Peter Sung has recently retired from the Coventry University, London and plans to set-up his own souvenir shop. He plans to invest £45,000 (£15,000 each in January, February, and April) in the new enterprise and has asked for your assistance to produce a cash budget as the bank has asked for that prior to approving his request for an overdraft facility for his business. The following has been budgeted for the first six months of the business:

costsVariable costs
January 13,0005,0003,500 7,0004,600
February 11,0004,0002,500 2,600
March 8,0006,0004,200 3,680
April 9,2007,1003,00014,0003,200
May 10,0005,8003,200 2,000
June 12,000 8,2004,000 3,000

The following additional information is available:
i.60% of each month sales are expected to be for cash. Credit customers pays a month in arrears.
ii. Suppliers offer a month credit on purchases and are paid on time.
iii. Wages, fixed costs and variable costs are paid in the month they are incurred.
iv. The bank balance as at 1 April 2019 is expected to be £2,480.