From the following information prepare cash budget for the months April, May, June and July 2019. (12.5 Mark)

Month

2019

Sales

$

Purchases

$

Wages

$

Sales Expense $

Production Overheads

March

60,000

36,000

9,000

4,000

4,500

April

62,000

38,000

9,000

5,000

3,700

May

65,000

33,000

9,000

4,500

3,900

June

58,000

35,000

9,000

3,500

4,300

July

56,000

39,000

9,000

4,500

4,400

August

60,000

34,000

9,000

4,500

3,800

Further Information:

1. Cash balance on 1^st April 2019 AED 8,000
2. Advance tax of AED 16,000 each is payable in March and July Sales
3. Plant costing AED 16,000 is due for delivery in July, payable 10% on delivery and balance after 3 months
4. Period of credit allowed by suppliers is two months and to customers one month
5. Lag in payment of selling expense is one month.
6. Wages are paid 20% in arrears in the following month
7. Overheads are paid in the following month.