The given data about Binny mills are for preparing a monthly cash budget for the three months ending 31st Dec.2020. Amt mentioned in the table and other information are in 000's Production Month Sales ($) Materials ($) Wages ($) Admn & Selling ($) June 3,000 1,800 650 225 160 July 3,250 2,000 750 225 160 Aug. 3,500 2,400 750 250 175 Sep. 3,750 2,250 750 300 175 Oct. 4,000 2,300 800 300 200 Nov. 4,250 2,500 900 350 200 Dec. 4,500 2,600 1,000 350 225 Other information: (i) Credit terms are: (a) Sales - 3 months to debtors. 10% of sales are on cash. On an average, 50% of credit sales are paid on the due dates while the other 50% are paid in the month following. (b) Creditors for material - 2 months. (ii) Lag in payment: Wages. 1/4 month, overheads 1/2 month. (iii) Forecasted Cash and Bank Balance on 1st Oct. expected $1,500. (iv) Other information (a) Plant and Machinery to be installed in Aug. at a cost of $24,000. It will be paid for by monthly instalments of $5,00 each from 1st Oct. (b) Preference share dividend @ 5% on $50,000 are to be paid on 1st Dec. (c) Dividends from investments amounting to $250 are expected on 31st Dec. (d) Income tax (advance) to be paid in December $ 500 Prepare the cash budget and comment on the liquid cash position of the firm