ABC Ltd has presented the following forecasted data for the period Nov 2020 to July 2021. It has been extracted from functional flow forecasts that have already been prepared. Details Sales Purchases Wages Overheads Telephone Internet Nov Dec Jan 2020 2020 2021 $ $ $ 150,000 160,000 170,000 50,000 55,000 70,000 10,000 12,000 16,000 10,000 10,000 15,000 2,000 2,000 2,100 500 500 700 Feb March April May 2021 2021 2021 2021 $ $ $ $ 170,000 180,000 190,000 200,000 85,000 100,000 110,000 120,000 20,000 24,000 28,000 30,000 15,000 15,000 15,000 16,000 2,200 2,200 2,250 2,250 700 700 700 700 June July 2021 2021 $ $ 210,000 220,000 130,000 140,000 33,000 36,000 16,000 17,000 2,300 2,300 700 800 The following additional information is available: a) Sales are 30% cash and 70% credit. Credit sales are paid two months after the month of sale. b) Purchases are paid 40% in the month they are incurred; 30% the following month and the rest are paid the month after. c) 65% of wages are paid in the current month and 35% the following month. d) Overheads are paid the month after they are incurred. e) Rent & Rates are paid at a fixed rate of $10,000 every quarter. f) Telephone bills are paid one month after the month of usage. g) Internet connection fees are generally fixed. The amount for the month is automatically deducted from the bank account of the company at the start of the month. Thus, the accountant has chosen to include it in the accounts as paid one month in advance. h) Supervisors receive a bonus of $12,000 following a performance evaluation every 6 months. The payment is done the next month of the evaluation. i) The company pays its annual insurance in the month of March. The amount for the year is $5,000. j) The opening cash balance is $40,000. 1. Prepare a cash budget for the six-month period January to June 2021. (30 Marks) 2. Explain the relationship between the functional budgets and the cash budget. Also, discuss their importance in an organization. (20 Marks)