The management of Simply Sweet (SS) Limited requires your assistance to produce a monthly cash budget for the month of January 2019.

SS makes and sells one product, Alpha. Each unit of Alpha is sold at R60. Sales information is given as follows:
November 2018 (actual)	800 units
December 2018 (actual)	1 100 units
January 2019 (budgeted)	1 200 units
February 2019 (budgeted)	1 300 units

Additional information:

20% of all sales are done on a cash basis.

The company has the following policy about collections from debtors:

50% of all credit sales are collected in the month of sale.

The rest is collected in two equal instalments in the two months following the month of sale.

The inventory requirements for each month must be sufficient to meet 30% of the next months sales value.

40% of all purchases is done on a cash basis.

The credit purchases are paid in the month following the month of purchase.

Manufacturing overheads amount to R6 000 per month. This includes depreciation of R1 000. All overheads are settled as they arise.

The bank balance on the 31st of December 2018 was R50 000 (favourable).

Required:

Prepare a cash budget for Simply Sweets Limited for the month of January 2019. Show all workings