Case Study Machan Shoes Maryam and Hand are planning to open a shop to seems shoes in Abu Dhabi, The venue of the shops decided to be a mente premises in Maria Mail. They wish to start the operations from 01 July 2020 They approached the bank for a working capital loan and they were told that any borrowing would have to be supported by a detailed statement of cash receipts and payments. They were also told that it would be very helpful to the bank towers would indicate the expected level of forecasted sales expected purchase and stursements for operating experies for the forthcoming the quarter of the financial year 2020 The company has decided to prepare various components of the operating and financial budget. You have been given the responsibility to prepare these components of the Operating and Financial budget for the third quarter of 2020 (July-September, 2020). The following information is available about the company's operations The company predicts a sale price of AED 350 per unit Sales in units from July-September, 2020 are as follows: Month Sales (Units 250 August 300 September All sales are on credit and are collected in the following ratio 45 percent collected in the month of sale 30 percent collected in the month after sale 25 percent collected in the second month after sale Cost of purchases are as follows Month Cost (AED) 120 000 August 195.000 September 1110 000 All purchases are ondt 40% percent of a months inventory purchases are paid in the month of purchases and 60% in the month ater purchases Operating expenses are budgeted per month as foliowe Operating expenses Amount (AED) Insurance 500 400 Sales & wages 7000 Rent 0.000 Omer 5.500 The company plans to bomow AED 55.000 in the month of July with an interest of 1.8% of the borrowed amount per month starting from August. The loan is to be paid in the end of September 2020 The Company will have a cash balance of AED 33.000 on 01 July, 2020 PART C 2. Prepare the following budgets and schedules for the third quarter of 2020 195 marks) a. Sales budget (6 marks) D. Schedule of expected cash collections from sales (15 mars! Schedule of expected cash disbursements for purchases and expenses (27 marts) d. Cash Budget (31 mark) . Analyse the cash collection schedule and provide you hudgement recommendations for Marian Shoes marks) 1. Analyse the cash disbursement and purchase schedule and prouide your usement Comment on your general findings (based on the cash collection schedulecash disbursement and purchase schedule, and cash budget and explain to Maryam and Hanad the importance of preparing Budgets Baris) PART D 3. Marian would like to analyse the cost, volume and profit for the month of July, 2020 assuming unit cost is 200 and find cost is to be AED 25.000 (22. marts (0 Create a CVP Income Statement (8 marks) Calculate the breakevien point in units (3 marks) and in ditoms (5 marks) Specify the equation used in each case Calculate the level of sales in units marks) and indian marks) required to achieve an income of AED 15,000. Specify the equation und in each case