Case 3: Al Naiza Company manufactures baby food and nutrition drinks. The company management feels that the cash management of the company should be made more effective as sometimes there find it difficult to meet obligations on time. The following information from the company's records is available to you: Sales Purchase Wages Miscellaneous expenses Month July June 10.000 | 12.000 August 15,000 September 14,000 October 18,000 6,000 4.000 6,000 5,000 6,500 2,000 1,000 1,800 2,000 2,200 1.000 800 1.200 600 500 Additional Information 1. Al Naiza Company expects to have RO 3.000 cash balance at the beginning of August. 2. Period of credit allowed by suppliers - 2 months 3. 20% of the total sale is for cash. Half of the credit sale is collected in the next month of sale and the remaining half in the following month after that. 4. Delay in payment of wages 1/2 month 5. Delay in payment of expenses 1/5 month 6. Income tax to be paid in the month of October RO 2.000. You are required to: a. Prepare an estimate of cash position for three months from August to October. (4 marks) b. What would be the cash position at the end of October if the company decides to make the following changes: The wages are delayed by 1/5 month The other expenses are delayed by 3/4 month The creditors have cut short the credit period by one month The cash sales are increased by 10% from the current percentage. (4 marks) c. Based on the budgets prepared, evaluate the cash position of the company before and after the changes give your comments. (100 words) (2 marks) d. Also provide five suitable suggestions to the management on effective cash management. (300 words) (5 marks) Total 15 marks (The calculations should form part of the answer)