Cash flow and Break-Even Exercise Using the forecasted figures below, construct a cash flow forecast for Devon Itd. Bank loan has been given 50,000 in April () Sales are expected to be 10 000 in April and May but increase by 50% in June a) Wages paid will be 8 000 per month (1) Rent is 500 per month but HRS will get a discount of 5% in June. () Utility costs are 200 in April and May but increase by 10% in June (vi) Material costs will be 1000 in April and May but increase 25 % in June Question 1 Budgeting_(13 marks in total) la One mark for each correct answer A-G points) Sales and Cost Budget: Carolle Ltd February 2018 Item Budgeted expenditure Actual Variance Adverse or expenditure () Favourable () Sales 220,000 280,000 Material 34,000 2000 Adverse Wages 51.500 51,700 D E Electricity F 4.000 1000 Favourable Advertising 700 900 G H Id Using the information above explain one advantage and one limitation of using budgets for CACO Lid. (6 marks)