Airtel 8:25 AM Done Maacho limited produce.. month: 60% to be paid in the month of usage and the balance one month later Prepare Cash Budget by months for the first quarter of year EXAMPLE THREE Marfo limited manufactures a product with the following unit information. Direct materials Direct Labour Variable production overhead 2 Selling price The sales budget for 2018 is for sales of 5,000 units in quarter one, 30,000 units in quarters two and three and 15,000 units in the last quarter Half of all units will be for cash. Of credit sales, payment for 85% will be received within the following quarter, 10% in the quarter after that, the rest being written off as bad. Direct materials are purchased in the quarter before use, but are paid for in the month in which they are used. Labour cost will be GHC25,000 in the second quarter, and GHC10,000 in the third quarter. direct labour were paid in the same quarter they are incurred Advertising cost of GHC30,000 will be paid for in May Capital equipment costing GHC70,000 will be paid for in September Fixed cost will be paid for in the same quarter they are incurred. Fixed cost are incurred evenly throughout the year. Annual fixed cost comprises Administration salaries of 400,000 maintenances of 120,000.Rent 300,000 Utitlities of 1,000,000 and office expenses of 60,000. The cash overdraft at the beginning of the year is expected to be 50,000.00 Prepare Cash Budget by months for the first quarter of year GHC15 GHC40