Draw up a cash budget for F. Jack showing the balance at the end of each month, from the following information for the six months ended 31 December 2017:
(a) Opening cash (including bank) balance on 1 July 2017 £3,600
(b) Production in units:

(c) Raw materials used in production cost £15 per unit. Of this, 90% is paid in the month of production and 10% in the month after production.
(d) Direct labour costs of £24 per unit are payable in the month of production.
(e) Variable expenses are £6 per unit, payable 40% in the same month as production and 60% in the month following production.
(f) Sales at £60 per unit:

Debtors to pay their accounts three months after that in which sales are made.
(g) Fixed expenses of £1,200 per month payable each month.
(h) Machinery costing £6,000 to be paid for in September 2017.
(i) Will receive a legacy of £7,500 in November 2017.
(j) Drawings will be £900 per month.

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2017 March April May June July 720 810 900 960 Aug Sep Oct Nov 1,020 930 1,050 1,110 1,140 Dec 780 2018 Jan 750