Delhi Ltd seeks your assistance in developing a cash budget for the sale of its USB product for August and September. The budget is to be based on the following assumptions: < All sales are on credit < 85 percent of sales are collected in the month of sales and the remainder is collected in the following month < Actual and projected sales follow: Dollars Units June $ 708,000 47,200 July $ 726,000 48,400 < August $ 714,000 47,600 September $ 684,000 45,600 October $720,000 48,000 Purchase data are as follows: < Delhi Ltd purchases inventory in the amount equal to next month projected sales amount. The inventory is purchased a month prior to the month of sale; 60 percent is paid in the month of purchase and the remainder in the following month. The unit cost of inventory is $10.00 Selling expenses are projected to be 5% of each month's sales. Selling expenses are paid in the same month as incurred Administrative expenses, mainly consisting of salaries, rent and other operating overheads, are budgeted to be $125,000 per month, of which $25,000 is depreciation. < Delhi Ltd pays rates (local government taxes) on the warehouse building four times a year: September, December, March, June. This year the rates are projected to be $6,500 each time Required: < (a) Prepare a cash budget for Delhi Ltd for August and September. (20 marks) < < (b) If Delhi Ltd invests the net cash flow from operating activities received in August in a short- term credit facility, which generates 6% return per year, how much extra cash inflow from interest income would Delhi I td receive in September (show your workings)? (3 marks)