Cash Budget Question Alberta Ltd's estimated revenues for the first four months of 2010 is as follows: All sales are on credit. Customers are expected to pay one-quarter of their debts a month after the sale and the remainder after two months: sales expected for November 2009 are R95,500, and for December 2009, R105,300. Material purchases for the same period are: - One fifth of the materials are paid for in the month of purchase and the remainder two months later: deliveries received in November 2009 wereR18,800, and in December 2009, R19,600. - Old factory equipment is to be sold in February 2010 for R2,800. Receipt of the money is expected in April 2010. New equipment will be installed at a cost of R20,000. One quarter of the amount is payable in February 2010 and the remainder 2 months later. Wage costs during this period are as follows: - Three-quarters of the wages are payable in the months they fall due, the remainder a month later: wages for December 2009 are estimated atR4,200. Overhead costs are as follows: - R12,000 of total monthly overheads are payable in the month they occur, and the remainder one month later: total overheads for December 2009 are expected to be R69,400. - The opening bank balance at 1 February 2010 is expected to be an overdraft of R11,000. REQUIRED: (a) Construct a monthly cash budget for Alberta Ltd for the 3 months from 15 Feb to 30 th April 2010, showing the cash balance at the end of each month. (A total column is not necessary _ 35 marks) (b) Advise the company about possible ways in which it can improve its cash management both in the long-term and the short-term (15 marks)