b) White Waters (Pty) Ltd intends to expand its Gaborone based operations by acquiring a new plant. The Finance Manger has been asked by the owners of the company to prepare cash flow forecasts for the business for the period December 2017 to May 2018. The marketing department has prepared the following forecasts. Month Sales (BWP) 180 000 October 2017 - Actual 180 000 360 000 November December January 2018 February March 450 000 500 000 360 000 O BOU 2018 Page 6 of 12 April 360 000 May 280 000 Collection estimates from the credit department are as follows: > Collections within the month of sale (cash sales) - 10% > Collection in the month following the sale 75% > Collection in the second month following the sale -15% Total labour and raw materials costs are estimated for each month as follows: Month BWP 216 000 270 000 December 2017 January 2018 February March 300 000 250 000 216 000 April May 168 000 General and administrative expenses will amount to approximately P27 00 per month, lease payments will amount to P9 000 per month; depreciation will be P34 000 per month; miscellaneous payments will be 2 700 per month; income tax payment of P300 000 will be due in March 2018 and a deposit of P180 000 on a new vehicle will be required in December 2017. The bank charges interest on overdraft of 7% (assume the interest is charged on closing balance for the previous month). The cash balance at the end of November will be P40 000. and Required: Prepare a cash budget for the period December 2017 to May 2018 (15 marks)