Using the following data use budgetary techniques to prepare cash budgets

Angelina and Charlie wish to form a new partnership business in the name of 'A & C'. The new business will start its operations from 1st January 2015. The business will provide tourist services in the city Angelina and Charlie are anxious to know whether they will have sufficient cash to keep them afloat for the first six months of trading.

Angelina and Charlie are to both put 25,000 each into the business bank account on 1st January.

They are to borrow a further 50,000 from Standard Chartered Bank at 8.5% per annum rate of interest with effect from 1 January. First quarterly payment on 1st April.

The forecast of the monthly sales are estimated to be as follows:

January - 6500

February - 12500

March - 12500

April - 13500

May - 14000

June - 12500

All clients are expected to settle their accounts one month after the sales go through.

Angelina will draw 1500 per month for personal use, but this will commence from 1st February

Staff salaries are estimated to cost 1850 per month, payable in the month.

Light and heat is estimated to cost 140 quarterly, paid by direct debit, the first quarter being due on 1ST April.

Premises are to be purchased for 105,000 and paid for by 5 equal monthly installments, the first 4 with effect from 1 January with a final installment payable in June.

A motor vehicle for 12600, to be paid for 3 equal installments commencing in January. Depreciation of motor vehicle is at 30% per annum. Computer equipment valued at 2500 is to be purchased in January with a 10% deposit followed by 5 equal monthly installments. The equipment is depreciated at same rate as motor vehicle.

An advertising and promotional campaign is expected to cost 1500 per month for the first 4 months and 1250 for final 2 months.

Motor expenses are expected to be 250 per month, payable in the month.

General overheads are expected to be 400 per month - payable one month in arrears.

Rates, water, insurance and other various costs are estimated to be 1400 per month for the first 4 months of business, rising by 20% thereafter. All costs are paid one month in arrears.