The following budget information relates to Flossy Limited for the three months to 31 March 2013:

1.

2.

3. Capital expenditure to be incurred on 20 February 2013 is expected to amount to £470,000.
4. Sales of plant and equipment on 15 March 2013 is expected to raise £30,000 in cash.
5. The cash at bank and in hand on 1 January 2013 is expected to be £15,000.

Required:
Prepare Flossy Limited's cash budget for each of the three months during the quarter ending 31 March2013.

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Budgeted profit and loss accounts Month January February March £000 2500 1 500 1000 £000 2000 1200 800 Sales (all on credit) Cost of sales Gross profit Depreciation Other expenses £000 3000 1800 1200 (100) (500) (600) 600 (100) (450) (550) 250 (100) (600) (700) 300 Net profit Budgeted balance sheets: Budgeted balancesDecember January February March £000 £000 £000 Current assets: Stocks Debtors Short-term investments 100 200 60 120 300 150 350 40 150 400 30 Current liabilities: Trade creditors Other creditors Taxation Dividends 160 50 110 50 150 200 180 50 150 50