LFJ Manufacturing requested the company cost accountant toprepare a cash budget for the four months ending 30 April 2018.

The following sales figures are for the months of November 2017to June 2018. The figures from January 2018 onward areestimated:

Actual Sales for 2017

November...............60,000

December................64,000

Sales Forecast for 2018

January.............65,000

February............70,000

March...................72,500

April..................76,250

May.................80,000

June................78,750

50% of the sales are usually paid for in the month in which theyoccur, while the remaining sales are paid for in the monthfollowing the sale.

Goods are sold at a mark-up of 25% on the goods purchased onemonth before sale. Half of the purchases are paid for in the monthof purchase while the remainder is paid in full in the followingmonth.

Wages of $12000 per month are paid in the month in which theyare earned. It is expected that the wages will be increased by 10%from 1 March 2018.

Rent will cost $60000 per annum payable three monthly in advancein January, April, July and December each year.

The directors have arranged a bank loan of $60000 which would becredited to company’s current account in February 2018

The half-yearly interest on 200000, 8% debentures of $1 each isdue to be paid on 15 January 2018.

The ordinary dividend of $12000 for the year 2017 will be paidin March 2018.

The bank balance at 31 December 2017 is $12000.

Required: Prepare a cash budget for the four months ended 30April 2018.

Give your answers to the nearest dollar