WS Ltd is in the process of preparing budgets for the period January to March 2013. The following information has been provided to assist in the budgeting process: Budgeted monthly sales revenue is as follows: GH December 2012 45,000 January40,000 February 70,000 March50,000 Sales are 20% cash and 80% credit. Credit sales are collected over a three-month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month followingsale. Bad debts of 5% are anticipated on all credit sales. Total sales revenue in November amounts to GH30,000 and December total sales revenue amounts to GH36,000. Cost of sales is expected to amount to 60% of sales revenue each month. The business maintains its closing inventory levels at 75% of the following months cost of sales. Inventory at the beginning of January is expected to amount to GH18,000. 50% of inventory purchased is paid in the month of purchase. The remaining 50% is paid for in the month following purchase. As at 30 December 2013, amount owed for purchases are GH11,700. A grant of GH20,000 is expected to be received in mid-January. A second-hand van which cost GH8,000 three years ago is expected to be sold in March 2013 for GH3,000. At this time the expected net book value of the van is GH1,800. Equipment costing GH4,500 will be purchased and paid for in February 2013. The equipment will be depreciated on a straight-line basis over three years. Operating expenses are paid as incurred. These have been estimated as follows: GH January 12,800 February 18,900 March 14,600 The above figures include depreciation on existing assets of GH2,000 per month. The cash balance on 1 January is expected to amount to GH8,000 Required: i) Calculate the purchases figure for each month from January, 2013 to March, 2013. ii) Prepare a cash budget monthly and in total for the period January, 2013 to March, 2013.