The following budgeted information relates to a furniture shop which sells a standard office cabinet and plans to open in January 2021.

Forecast monthly sales (in numbers of units of furniture) for the four-month period in 2021 are as follows:

January - 750

February -830

March- 510

April - 240

Additional Information:

1. (i)The annual cost of Rent is to be paid monthly in equal instalments.
2. (ii)Staff salary costs are paid on a monthly basis and paid on the last day of the
3. month.
4. (iii)Utility bills for electricity and telephone are paid in the following (next) month.
5. (iv)The shop buys its stock of furniture in such a way that in any given month, the
6. shop has enough furniture for that month and the following month's sales. The
7. shop's suppliers are paid in the month following the purchase.
8. (v)The shop's customers are given a month's credit and they pay for their
9. purchases in the month following the purchase.
10. (vi)The opening balance of cash on 1st January 2021 is expected to be $20,000.

Please I need to compare my answers, this task requires to prepare cash budget for the furniture shop for the period January to March 2021 and answer the questions which follow.