The following information has been provided for Bay Watch (Pty) Ltd.

	Actual			Forecasted
	March	April	May	June	July
	R	R	R	R	R
Sales (40% cash,60% credit)	264 000	316 400	356 600	352 000	368 000
Purchases	238 160	274 280	280 320	276 000	284 000
Salaries	26 320	26 320	?	?	?
Distribution cost	13 200	15 820	17 830	17 600	18 400
Other operating expenses	7 480	7 760	10 160	8 200	8 600
Credit losses	7 920	9 492	10 698	10 560	11 040

Additional information:

a) Cash in respect of credit sales is collected as follows:

- 60% in the month of the sale

- 25% in the month following the sale

- 10% in the second month following the sale

- 5% is uncollectable.

b) 70% of all purchases are on credit and are paid during the month that follows that of the transaction.

c) All salaries, distribution and other operating expenses are paid in cash in the month that they are incurred.

d) In May, all employees receive their annual increase of 5%.

e) Other operating expenses include depreciation of R3 000 per month.

f) A 30-day loan of R40 000 was obtained from FNB bank in June 2023 to be repaid in July 2023, R2 000 interest will be capitalised onto the loan and payable upon settlement of the loan.

g) The cash in the bank on 1 June was R20 800.

REQUIRED

Prepare the cash budget for the months of June and July 2023.