Reference no: EM132548609

Niblick supplies golf equipment. Ten percent of his sales are for cash; the remainder is on one month's credit. He receives one month's credit on all purchases. Sales and purchases are as follows:

                                              Sales                                    Purchases

December 2007                   30,000                             16,000

January 2008                       25,000                               14,000

February                             18,000                                20,000

March                                   22,000                               25,000

April                                        28,000                              30,000

Niblick pays wages of $2,000 per month. He pays rent of $10,000 per annum; he paid one year's rent in advance on 1 January 2008. Other expenses, $1,500 per month, are paid currently. On 6 February 2008, Niblick plans to sell a van for $2,300 and to buy a new one for $6,000 on 15 March 2008.

Niblick draws $1,000 a month for living expenses. At 31 December 2007, Niblick's bank balance was $7,000 (in hand). His father will lend the business $4,000 on 1 April 2008.

Required

Question 1: Niblick's cash budget for the four months to 30 April 2008.