The following data and estimates are available for a Kathy food processing section in a distribution centre for April, May, and June.

Item	April ()	May ()	June ()
Sales	22,000	25,000	20,000
Wages	6,500	7,500	6,600
Overheads	6,000	6,100,	6,100

	April ()	May ()	June ()
Opening Stock	2,500	1,500	500
Material Usage	11,000	13,000	12,000
Closing Stock	1,500	500	3,000

Additional Notes:

1. The closing cash balance at 31st March is expected to be 1,800.

2. 25% of sales are for cash, the balance being received the following month. The amount to be received in April for Marchs sales is expected to be 15,000.

3. Purchases of direct materials are paid for in the month after purchase. In April 9,500 will be paid for purchases relating to the previous month.

4. Overheads include 500 per month for depreciation. Overheads are paid in the following month. In March, overheads are anticipated to be 5,900 including depreciation.

5. Wages are paid in the month they are incurred.

6. A new machine for the centre is planned to be purchased in June at a cost of 10,000, this will be paid in the month of purchase.

You are Required to:

(a) Calculate the amount to be paid for direct materials purchases in each of the months of April, May, and June.

(b) Calculate the amount to be received from sales in each of the months of April, May and June.

(c) Prepare cash budgets for the months April, May and June.

(d) What advice would you offer the company given the forecast closing cash balances.