1. Gerry Limited manufactures and sells furniture. You have been asked by the CEO to prepare a monthly budget for the four months ending 31 May 2023. 
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3. You have been given the following information:
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5. I. Inventory is expected to be stable over the four month period.

II. Sales are expected to be €90,000 per month. Cash sales are 50% of sales with a 2% discount given to customers with cash sales.
III. Credit sales are 50% of sales and these customers are expected to take one month to pay off the sales. On average, 5% of credit sales each month are expected to go unpaid and this will lead to bad debt. You must assume that the receivables on 1 February 2023 will amount to €42,500 and that 95% of this amount will be received in February 2023, with the remaining 5% being bad debts.
IV. The materials are expected to be €13,200 per month and the supplier allows the company to pay one month after the purchase date. You must assume that payables on 1 February 2023 will amount to €14,400. This amount will be paid in February 2023.
V. Direct labor costs are expected to amount to €29,700 per month, of which 60% is paid in the month of expenses while the remaining 40% is paid one month after the month of expenses.
VI. Manufacturing overhead is estimated at €7,000 per month for February and March and €8,000 per month for April and May.
VII. Selling expenses are expected to be 5% of total sales expected to be paid in the month of sales.
VIII. The company is expected to purchase equipment in March for €65,000 and is expected to pay in April.
IX. On February 1, 2023, it is expected that the bank balance will reach €52,000.

You are asking for:
(a)Make the cash budget for the four months ending 31 May 2023.
(b) Interpret the results.