Serena Enterprise is applying for loan with a local bank in order to expand her business. The following is available regarding her cash utilization.

1. Cash balance as at 1^st January 2020 is expected to be RM25,000.
2. Forecast sales and purchases for December 2019 to March 2020 are as follows:-

Month	Purchases	Sales
	Units	Units
December 2019	25,000	22,000
January 2020	30,000	28,000
February 2020	35,000	34,000
March 2020	40,000	40,000

3. Terms of purchase: Purchase price is RM3 per unit. 70% of the monthly purchases are on a cash basis and balance is settled in the month following the purchase.
4. Sales price is RM4.25 per unit. 60% of the monthly sales are on a cash basis and balance is collected in the month following the sales.
5. Forecasted expenditure for the months are as follows:-

• Wages amounting to RM17,500 is paid at the end of each month.
• Rent of RM7,200 is payable semi-annually. The first payment to be paid in January 2020.
• Office Computer will be bought in January 2020. A deposit of RM1,000 to be paid immediately. The balance to be paid in installments of RM250 per month.
• General Expenses of RM 380 is expected to be paid each month.
• A loan of RM2,000 is to be repaid in February 2020.
• The owner Serena is expected to make a monthly withdrawal of RM500.

You are required to produce a Cash Budget from January to March 2020.