2 (15 MARKS) The management of Sweets Limited decided to draw up a cash budget for May, June and July. The following information is available: ACTUAL BUDGETED Feb March Apr May Jun Jul R R R R R R Sales: Cash 150 000 180 000 200 000 300 000 320 000 300 000 Credit 400 000 500 000 580 000 580 000 600 000 650 000 Purchases 450 000 500 000 800 000 680 000 800 000 700 000 Wages and salaries 60 000 60 000 65 000 65 000 70 000 70 000 Depreciation 25 000 25 000 25 000 25 000 35 000 35 000 Interest paid 12 000 13 000 14 000 14 000 14 000 15 000 Additional information: 1. Credit sales are collected as follows: 60% within 30 days; 2. 30% within 60 days; The rest is written off. The following discounts are granted: 15% on all cash sales 10% on credit sales of which the account is paid within 30 days 3. On 30 May value-added tax of R150 000 is to be paid. 4. 30% of all purchases are made in cash and a discount of 5% is granted. The rest are all credit purchases and are paid in the month following the transaction. 5. On 30 July accrued bonuses of R80 000 must be paid. 6. The overdrawn bank account on 30 April amounts to R70 000. REQUIRED: 2.1 Prepare the cash budget of SWEETS Limited for the months May, June and July