The following information has been extracted from the budget files of Belle Ltd. for the period commencing in Jan and to June 2020.

Month

Sales

Purchases

Wages

Overheads

Jan

75,000

35,000

10,000

10,000

Feb

80,000

60,000

10,000

12,000

March

100,000

78,000

12,000

15,000

April

90,000

75,000

12,000

10,000

May

95,000

60,000

12,000

12,000

June

75,000

62,000

10,000

15,000

Additional information

• 40% of sales will be for cash with the remainder being credit sales. Credit sales payments are received one month after they are made.
• All purchases will be paid one month in arrears.
• Overheads will be paid in the month incurred.
• Wages will be paid 50% in the month incurred and 50% one month later
• Dividend of 50,000 will be paid in May 2020
• The cash balance at the 1^stMarch 2020 is expected to be 20,000.
• The company intends to purchase and pay for a new piece of equipment in May 2020 at a cost of 25,000.

You are required to:

a cash budget for Belle Ltd for each of the four months March-June 2020, detailing cash flows for each month and in total for the period.