A newly formed kit car company will commence operations in January. The following estimates have been prepared for the next four months: January February April 75 March Sales (kits) Production (kits 5 30 45 40 40 60 60 2C0 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 Selling price (per kit) Cost per kit Material Labour Variable overhead $1,500 S 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. J7500 Sos s0-45o I500K USTT 7500 Trade Terms Sales-50% cash, the balance to be payable 2 months later Labour-cash. $211S cesi All other expenditure-2 months' credit. Required Prepare a cash budget for the 4 months to April, showing clearly the balance (or overdraft) at each a. month end. b. State how many kits will be in stock at 30 April