The opening cash balance on 1st Jan was expected to be 30,000. The sales budgeted were as follows

November December January February March

80,000 90,000

75,000 75,000

80,000

Analysis of records shows that debtors settle according to the following pattern:

60% within the month of sale, 25% the month following, 15% the month following. Extracts from the Purchases budget were as follows:

December January February March

60,000 55,000 45,000

55,000

All purchases are on credit and past experience shows that 90% are settled in the month of purchase and the balance settles the month after.

Wages are 15,000 per month and overheads of 20,000 per month (including 5,000 depreciation) are settled monthly.

Taxation of 8,000 has to be settled in February and the company will receive settlement of an insurance claim of 25,000 in March.

Required:

Please provide cash budget for January, February and March.