Gerald and Tony Plaid have recently won a design award for their leather walking boots and have established a company,Nemo company, to commence production of the footwear. The leather boots have an innovative design and are made ofa resilient, cushioning material, which reduces the possibility of injury. Joe has just read a newspaper article about theimportance of cash budgets in highlighting the finances required for business operations. Consequently, he has askedfor your assistance in preparing a cash budget for the first four months of operations, from May to August $2017.$ Thefollowing information has been obtained from a planning meeting with the Plaid brothers:$1.$ Leather boots are produced for men and women. Details of selling prices and projected sales for the four$-$month period are shown below.Type of boots Selling price Pairs of bootsMay June July AugustMens Tzs$802,0002,4003,0003,200$Womens Tzs$701,4001,8002,4003,0002.$ It is expected that all sales will be on credit to department stores and shops specialising in outdoor wear. Thebrothers estimate that $30\%$ of customers will pay within one month while the remaining customers will taketwo months to pay$\mathrm{.}3.$ Production of the leather boots is based on sales demand. The company requires a closing inventory of $200$pairs of womens boots and $400$ pairs of mens boots at the end of each month. As the company is justcommencing operations there are no opening inventories of boots$\mathrm{.}4.$ The boots comprise cushioning fabric and specially treated rubber for the sole. The materials and labourrequired to make each pair of boots are shown in the following table.Type of boots Cushioning fabric@Tzs$28$ per metreRubber @Tzs$8$ per metreLabour @Tzs$4$ per hourMens $0\mathrm{.}4$m $0\mathrm{.}15$m $0\mathrm{.}25$ hoursWomens $0\mathrm{.}3$m $0\mathrm{.}10$m $0\mathrm{.}20$ hours$5.$ Both of the materials are supplied by one company based in Malaysia. This supplier requires that $50\%$ of thepurchase total is paid for in cash with the order, and allows one months credit for the remaining amount.Labour costs are paid in the month incurred$\mathrm{.}6.$ Each pair of boots produced will be packed in a biodegradable cardboard box using environmentally friendlypackaging costing, in total,Tzs$1\mathrm{.}85$ per box. The company will buy the packaging materials from an Irishcompany based in Cork and it has agreed one months credit for these purchases$\mathrm{.}7.$ The company has signed a rental agreement for the production facility. The total factory rent for the year willbeTzs$360,000,$ which will be paid in equal monthly instalments. A security deposit amounting toTzs$25,000$must also be paid in May. Other operational costs including power, insurance, and administration expenses,which must be paid monthly, are expected to beTzs$93,600$ for the year$\mathrm{.}8.$ To promote the walking boots a marketing campaign for television, radio, newspaper and social media hasbeen organized. The total cost of the marketing campaign has been agreed atTzs$33,600$ for the four$-$monthperiod payable in equal instalments from May $2017.$ A commission of $5\%$ of projected sales is also payableone month in arrears.Gerald and Tony Plaid will introduce capital ofTzs$50,000$ at the commencement of the companys operationsREQUIREMENT:$($a$)$ Prepare a cash budget for Nemo company on a monthly basis, for the four$-$month period commencing $1$ May$2017($b$)$ Explain the meaning of the following terms:$($i$)$ Master budget.$($ii$)$ Flexible budget