0 Question 2 Joy Joy Limited ends its financial year on December 31 each year. As a financial consultant, you have been asked to assist in making a cash budget early January 2022. The following information is available from the companys records and interviews. a. Management feels that sales pattern for 2021 is a reasonable basis for budgeting the sales for 2022. Sales for the first six months in 2021 were as follows: GH January 820,000 February 840,000 March 1,200,000 April 1,080,000 May 960,000 June 800,000 b. It is envisaged that sales in 2022 will increase by the 5% due to the economic conditions in the country. c. The sales at December 31, 2021 totaled GH760,000. Sales collection are generally as follows: During month of sale 60% In the first subsequent month 30% In the second subsequent month 10% d. Purchases average 70% of selling price. All purchases are paid for by the 10th of the following month. e. Recurrent fixed costs amounted to GH160,000 per month of which GH50,000 is for depreciation. Variable costs amount to 15% of sales. Payments are made as follows: During month incurred the following month Fixed costs 60% 40% Variable costs 70% 30% f. Annual property taxes amount to GH100,000 and are paid in two installments on December 31 and March 31. g. It is anticipated that a cash dividend of GH40,000 will be paid on the 15th day of the third month in each quarter. h. In addition to the variable costs incurred in item (d) above, advertising will require cash payment of GH10,000 in February and GH30,000 in March. i. Equipment replacement costs of GH6,000 per month are incurred. j. The cash balance on December 31, 2021 was GH200,000