Details Sales R300000 R 425000 Purchases R 200000 R 250000 Salaries R 30000 R 32000 QUESTION 4 [Budgets, Planning and Control] The following information is available for Randburg limited. January(Actual) February(Actual) March(Budgeted) R 400000 R 400000 R 32000 April(Budgeted) R 350000 R 120000 R 35000 Operating R 40000 R 40000 R 40000 R 43000 expenses Acquisition of R 120000 Equipment Loan from R 300000 Rose bank Ltd Additional Information Opening cash balance on the 1st of March is R76500. 25% of the sales are for cash and 75% of total sales are on credit. Of the credit sales debtors pay as follows.50% pay in the month following the month of sale.30% in the second month after sale and the 20% in the third month after sale. Purchases are made as follows.60% are on cash and the remainder are on credit. Credit purchases are paid for in the month following the month of purchase. Operating expenses include R6000 depreciation per month. All other expenses are paid for tin the month in which they are incurred. a) Prepare the cash budget for the two months March and April. (30 marks) b) Zero based budgeting (ZBB) is a method of preparing budgets from scratch each year, with no pre-authorised funds. The main aim of ZBB is to overcome the limitations of incremental budgets, and is best used when dealing with discretionary costs. Discuss the advantages and disadvantages of zero based budgeting(ZBB) c) Explain what is meant by the following terms giving examples. i) Discretionary costs ii) Controllable and uncontrollable costs (5 marks) (5 marks) (5 marks)