4. The following data and estimates are available for a Farm Fresh food processing section in a distribution centre for April, May and June. Item April () May () June () Sales 22,000 25,000 20,000 Wages 6,500 7,500 6,600 Overheads 6,000 6,100 6,100 April () May () June () Opening Stock 2,500 1,500 500 Material Usage 11,000 13,000 12,000 Closing Stock 1,500 500 3,000 Additional Notes: 1. The closing cash balance at 31st March is expected to be 1,800. 2. 25% of sales are for cash, the balance being received the following month. The amount to be received in April for March's credit sales is expected to be 15,000. 3. Purchases of direct materials are paid for in the month after purchase. In April 9,500 will be paid for purchases relating to the previous month. 4. Overheads include 500 per month for depreciation. Overheads are paid in the following month. In March, overheads are anticipated to be 5,900 including depreciation. 5. Wages are paid in the month they are incurred. 6. A new machine for the centre is planned to be purchased in June at a cost of 10,000, this will be paid in the month of purchase. Required: (a) Calculate the amount to be received from sales (note 2) in each of the months of April, May. and June. (2 marks) (b) Calculate the amount to be paid for direct materials purchases (note 3) in each of the months of May and June, April is given above. (2 marks) (c) Prepare cash budgets for the months of April, May and June. (5 marks) (d) What advice would you offer the company given the forecast closing cash balances. PLEASE SHOW ALL WORKINGS, THANK YOU. (1 mark)