Cost accounting simple question

The following information related to the proposed budget for KASEE Ltd for the months ending 30 June 2014.

Material           Production             Administration Month         Sales       Purchases              Wages    Overheads          Overheads

                  Sh. ‘000’   Sh. ‘000’    Sh. ‘000’ Sh. ‘000’           Sh. ‘000’

January       72000        25000          10000      6000                   5500

February     97000        31000          12100      6300                   6700

March         86000        25500          10600      6000                   7500

April           88600        30600          25000      6500                   8900

May            102500      37000          22000      8000                   11000

June            108700      38800          23000      18200                 11500

Additional Information

1.    Depreciation expenses are expected to be 0.5%of sales.

2.    Expected cash balance in hand on 1 January 2014 is Sh. 72,500,000

3.    50% of total sales are cash sales

4.    Assets are to be acquired in the months of February and April at Sh. 8,000,000 and Sh. 25,000,000 respectively

5.    An application has been made to the bank for the grant of a loan of Sh. 30,000,00 and it is hoped that it will be received in the month of May

6.    It is anticipated that a dividend of Sh. 35,000,000 will be paid in June

7.    Debtors are allowed one month’s credit

8.    Creditors, production Overheads and administration overheads are paid after one month

9.    Sales commission at 3% on sales is paid to the salesmen each month 10. All purchases are on credit

Required: A cash budget for the six months ending 30 June 2014