BRADFORD Ltd is starting up a new business on 1 January 20X0 and has provided you with the following information: Quarterly Utilities (payment due in March & June) Cash outlay on equipment (payable in February) Monthly planned purchases of stock for re-sale are: January February March April to June (per month) All stock is bought on two month's credit Monthly planned sales are: January February March April May June 44 12,000 150,000 30,000 34,000 45,000 12,000 25,000 65,000 35,000 60,000 35,000 38,000 All sales are on one month's credit. 5% discount will be given to customers for sales above 40,000 if payment done on the same month. Customers are normally happy to take discounts when available. The monthly cash outlay on salaries are expected to be 25,000 per month. Depreciation of equipment on the first half year is computed at 50,000. On 1st Jan. 20X0 BRADFORD will provide 400,000 Ordinary Share Capital. The budgeted closing stock at the end of June, 20X0 is estimated at 20,000. Required: (a) Prepare a cash budget and a budgeted income statement for the six month period. A balance sheet is not required. Clearly detail your calculations.