Prepare a statement of budgeted cash flows for each of the months of January and February

Smith plans to sell a single product at £10 each. His expected volume of sales for his first two months in business from 1 January to 28 February Year 1 is as follows:
January. February
Volume. 200 units. 400 units

He sells his product for both cash and credit terms, and estimates that 20% of all sales will be for cash and the remainder will be on credit terms. Research has shown that on average 60% of trade debtors pay in the month following the month of sale and 40% in the second month following the month of sale.

The cost of the product to Smith will be £6 per unit. Units will be bought in the month of sale and paid forin the following month. It is expected that expenses will be incurred at the rate of £200 per month, half of which will be paid for in the month in which they are incurred and half will be paid for in the following month.

Required:
Prepare a statement of budgeted cash flows for each of the months of January and February.