The following budget estimates have been prepared by Clifton Company: 
The company likes to maintain a minimum cash balance of £40,000.
Any excess cash is invested in a money market account earning 9 per cent compounded monthly. Interest is reinvested in the money market account. Any cash deficiencies are covered by a withdrawal from the money market account. If additional cash is needed, the company has a line of credit at 12 per cent interest with the local bank. Interest is paid monthly.
Assume a cash balance on May 1 of £40,000, a money market account balance of £0, and a credit line loan balance of £0.
Required:
Prepare a cash budget for May and June.
Definitions:
Social Capital
The networks of relationships and connections among people that can be utilized to gain advantage and achieve goals.
Productive Potential
The maximum output a person or entity can produce with the available resources without sacrificing quality.
Socially Determined
Characteristics or behaviors that are shaped by societal influences rather than individual choices or biological predispositions.
Prescription
A prescription is a formal instruction written by a licensed medical professional that authorizes a patient to be provided a medicine or treatment.
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