A newly formed kit car company will commence operations in January. The following estimates have been prepared for the next four months: 75 January February March April Sales (kits) 5 30 . 145 Production (kits) 40 40 60 60 200 1200 2,500 4500 There will be nil stocks (kits) at 1 January. Stocks (raw material) to have the value of $20,000 to be in stock at 31 January and continuously thereafter. $1,500 Selling price (per kit) Cost per kit Material Labour Variable overhead 700 400 100 Fixed overhead will be $11,500 per month Plant and Machinery $100,000 of plant to be purchased payable as follows: February $50,000; April $25,000; June $25,000. Depreciation is to be charged at $1,500 per month. 15 w x 30=45,000 X -RS0 1500 x 45:67500 Trade Terms isoo x 75 =1250 Sales -- 50% cash, the balance to be payable 2 months later. Labour-cash. All other expenditure - 2 months' credit. Required a. Prepare a cash budget for the 4 months to April, showing clearly the balance (or overdraft) at each month end. b. State how many kits will be in stock at 30 April