The following data pertain to a shop. The owner has made the following sales forecasts for the first five months of the coming year. Other data are as follows: 1. Debtors’ and creditors’ balances at...

The following data pertain to a shop. The owner has made the following sales forecasts for the first five months of the coming year.

Other data are as follows: 1. Debtors’ and creditors’ balances at the beginning of the year are `30 lakh and `14 lakh, respectively. The balances of other relevant assets and liabilities are: Cash balance, `7.5 lakh; Stock, `51 lakh; Accrued sales commission, `3.5 lakh. 2. 40 per cent sales are on cash basis. Credit sales are collected in the following month. 3. Cost of sales is 60 per cent of sales. 4. The only other variable cost is a 5 per cent commission to sales agents. Sales commission is paid in the month after it is earned, that is, the time-lag is one month. 5. Inventory (stock) is kept equal to sales requirements for the next two months’ budgeted sales. 6. Trade creditors are paid in the month following purchases. 7. Fixed costs are `5 lakh per month, including `2 lakh depreciation. You are required to prepare a cash budget for each of the first three months of the coming year.