The following information relates to the six-month period January to June for the next financial year and contains the projected sales and production figures for their new product.

Jan Feb Mar Apr May Jun

Production budget - units 450 450 458 450 435 450

Sales budget - units 450 430 440 450 470 465

Unit selling price and cost data:

Selling price per unit 25.00

Material price per unit 2.20

Labour cost per unit 8.00

Variable overhead cost per unit 1.20

Other information:

a) There was an opening cash balance of 1,000 in April.

b) It is estimated that sales revenue will consist of 80% credit sales and 20% cash sales.

c) Credit customers have two months credit and cash customers will receive a 2% discount on selling price.

d) Material costs are paid one month after production.

e) Wages are paid in the month incurred.

f) Rent paid for the premises is 1,500 per annum.

g) Variable overheads are paid one month in arrears, fixed overheads consisting of rent paid is paid every three months starting in January.

h) In January the company purchased a new machine which cost 4,000 and was paid in two instalments over a 12 month period, the first of the instalments was in January. Loan interest is 5% per annum and is paid in two instalments in June and December. Loan interest is calculated on the value of the cost price of the new machine.

Required

To be prepared a three month cash budget from April to June, clearly showing the opening and closing balnces.