Question 3 King Ltd has a division in Juno Island and the Finance manager has approached to you assist them in developing a cash budget for a period of three months from September to November 2023. The company's activities are planned as follows: 1. Planned sales for August, September, October, and November 2023 are $380,000, $400,000, $440,000 and $460,000. 2. 40% of sales are on a cash basis while the remaining sales are on credit and 60% is collected one month after sale. 3. The company's purchases are 65% of sales. Purchases are made one month prior to sales, with payments made in the month following the purchase. 4. The bank balance on 31 August 2023 is expected to be $80,000. 5. Fixed salaries cost the company $6,800 per month. 6. $90,000 worth of Office Equipment is expected to be bought and paid for at the end of November 2023. NOTE: Copy the cash budget format into your answer booklet. King Ltd Cash budget from September to November 2023: Cash receipts: Total sales (for reference only) Cash sales ( Collection from credit customers: % in the month following sales Total Receipts Cash Payments: Purchases - % of Total sales) % of total sales Fixed salaries Purchase of Office Equipment Total Payments Surplus/(Deficit) for the month Cash balance, at start of month Cash balance, at end of month September $ October $ November $ Total Required: Prepare the monthly cash budget for the period of three months ending November 2023 for King Ltd's Juno Island. [Total: 20 marks]