Oasis limited commenced trading a number of years ago and is now seeking a bank loan in order to expand. The company imports Ipad cases and currently sells them in a number of stores in Ireland and the UK. Additional funding would allow the company to expand into Europe. However, to consider an application for finance, the bank requires Oasis limited to prepare a cash budget, forecasting its receipts and payments for the next six months commencing on 1 May 2021. The company has provided the following information: Every Ipad case will cost Euro6.20 to buy from the supplier and the company has agreed to pay 50% of all purchases in cash immediately with the remainder to be paid in the month after purchase. 1. 2. The selling price to retail customers will be Euro11.25. The company forecasts the following sales (in units) for the next seven months: May June July August September October November 10,000 12,000 15,000 15,000 16,000 18,000 18,000 In order to encourage prompt payments from customers, effective from 1 May 2021, the company has decided to give a discount for cash payments. Oasis limited expects that 20% of all customers will avail of this offer and will receive a discount of 5%. Of the remaining monies receivable, the company expects to receive 50% one month after the month of sale, 45% two months after the month of sale and the remainder will be bad debts (i.e. they will never pay). 3. 4. To ensure that sales opportunities are not missed, the company will hold inventory at the end of each month amounting to 10% of the following month's projected sales. On the 1 May 2021, the company expects to have 1,000 cases in inventory. 5. Salary and wage costs per month are expected to be Euro19,000 for May and June and then Euro21,000 in July, Euro23,000 in August, Euro25,000 in September and Euro27,000 in October. These are paid in the same month that they are incurred. 6. Administration costs are projected to be Euro82,200 for the year, including depreciation of Euro9,900. Administration costs are paid on a monthly basis with the cost incurred evenly each month over the entire year. 7. The company has decided to purchase additional computer equipment to support its sales staff. Laptops and printers costing Euro16,200 will be purchased and paid for in October. At I May 2021, Oasis limited projects that it will have the following balances: 8. Bank overdraft Euro 2,960 Accounts receivable (all amounts to be received in May 2021) Accounts payable (due to be paid in May 2021) Euro30,980 Euro25,100 REQUIREMENT: Prepare a cash budget for Oasis limited, on a monthly basis, for the six-month period commencing 1 May 2021, clearly showing the closing cash balance at the end of cach month.