A$).$ Nana K Company buys and sells a single product. The firm's current financial year will end soon, and management wants to prepare operating budgets for the coming year. Management is particularly concerned about the first quarter of the coming year as the first quarter of each of the last five years was a difficult period. You have been engaged to prepare a cash budget for the first quarter, and you gathered the data below.

i$)$ The beginning cash balance for the first quarter, starting January $1,$ is expected to be GHS$30,000.$ However, the company plans to keep a minimum cash balance of GHS $40,000$ at the end of each month in the first quarter. The company can borrow up to GHS$80,000$ from a line of credit with its bankers at $15\%$ annual interest. The company plans to borrow in a multiple of $1000$ at the beginning of any month in which cash balance would fall below the minimum and pay principal and interest at the end of any subsequent month in which cash balance would exceed the minimum balance.

ii$)$ The company sells one unit of the product for GHS$5.$ Actual sales units for the last month in the current year and budgeted sales units for the first quarter of the coming year are under.

$\backslash$table$[[$Month$,$Actual units sold,$\backslash$table$[[$Budgeted units to be$],[$sold$]]],[$December$,80,000,],[$January$,,62,000],[$February$,,65,000],[$March$,,71,000]]$

All sales are made on credit. Records show that $70\%$ of sales are collected in the month of sale and $25\%$ in the following month; the balance is uncollectible. Note that the December sales will be collected in that manner.

iii$)$ Budgeted inventory purchases and budgeted expenses for the first quarter are under.

$\backslash$table$[[,\backslash$table$[[\backslash$table$[[$January$],[$GHS$]]]],\backslash$table$[[\backslash$table$[[$February$],[$GHS$]]]],$March$]]$

$\backslash$table$[[,,,$GHS$],[$Inventory purchases,$145,000,149,700,152,000],[$Salaries and wages,$75,800,81,500,85,100],[$Distriburion costs,$7,900,8,400,8,300],[$Urility expenses,$5,500,6,500,7,100],[$Depreciation$,8,100,8,100,8,100]]$

$80\%$ of inventory purchases are paid in the month of purchase and the balance in the month following purchase. Accounts payable, GHS$70,000,$ in respect of December inventory purchases will be paid in January. Budgeted cash expenses are paid in full in the month in which they are incurred.

iv$)$ The company plans to replace one of its delivery vans in January. That is$,$ an old motor vehicle will be sold for GHS$12,000$ cash and a new one will be bought for GHS$65,000$ cash.

Required:

$($c$)$ Prepare a sales budget for January, February, and March and for the Quarter in total.

$($f$)$ Prepare a schedule of expected cash collections for January, February, and March and for the Quarter in total.

$($g$)$ Prepare a schedule of expected cash disbursements for inventory purchases and budgeted cash expenses for January, February, and March and for the Quarter in total.

$($h$)$ Prepare a cash budget, by month and in total, for the first quarter ending March.