from the following data construct a cash budget for the six months ending 31 decembe 611315

From the following data, construct a cash budget for the six months ending 31 December 2016:

(a)Purchases and sales are expected to be as follows:

(b)The selling price of each unit is £50.

(c)The purchase price of each unit is £20, but this will rise by 20% on 1 October 2016.

(d)Purchases are paid for one month in arrears.

(e)Twenty-five per cent of sales are for cash, with each sale receiving a 4% cash discount. The remainder will delay payment by one month.

(f)Trade debtors as at 30 June 2006 amounted to £4,500.

(g)Trade creditors as at 30 June 2006 amounted to £2,800.

(h)A new van is expected to be purchased in September, which would cost £18,000. The old van would be traded in at a value of £5,000. However, only half of the net purchase price would be paid then. The remainder would be paid in 2017.

(i)Wages and salaries amount to £3,000 per month, paid in the month incurred.

(j)Overhead expenses will be £900 per month, paid when incurred.

(k)On 1 July 2016 the bank balance was £9,000.