by O. 2. MAX & SPENCER LTD. manufacture Polo shirts with the following details: Per unit data Direct Materials Direct Labour Variable Overheads GHC 40 52 Profit Selling Price Fixed costs, amounting to GHC 8,000 per month are paid in the month in which they arise. Customers setle their May accounts in July (two months later) 28 80 The company pays its suppliers of material two months after the purchase. Production and sales units are as follows: May Jun July Aug Sep Oct Nov Dec Production 1,200 1,400 1,600 2,000 2,400 2,600 2,400 2,200 Sales 1,000 1,200 1,400 1,600 1,800 2,000 2,000 2,600 Sufficient materials were to be purchased for each month's production and all purchases and sales were to be on credit. Wages were to be paid in the month of production. Variable Overheads were to be paid 50% in the month of production; the balance in the following month. Depreciation will be GHC3, 000 monthly and there will be profit on disposal of GHC 5,000 in August. Tax of GHC 21,000 will be paid in November. A new item of plant was to be bought and paid for in September at a cost of GHC 8,000. It is hoped an old plant will be sold in September for GHC2,800 The company's opening bank balance is GHC 14,400 in debit. Required: a) Prepare a month by month Cash Budget for the second half of the year and advice 30 mar management of MAX & SPENCER LTD accordingly