K-Therm Ltd is in the process of preparing its budgets for the period April 2021 to June 2021 and have provided the following information to assist in the budgeting process: 1. Budgeted monthly sales revenue is as follows: February 300,000 March 330,000 April 360,000 May 480,000 420,000 June July 570,000 A quarter of sales are for cash, with the remainder on credit. The credit sales are collected over a two-month period with 20% received in the month following sale and balance in the month after that. 2. Cost of sales is expected to amount to 65% of sales revenue each month. 3. K-Therm's policy is to hold closing inventory levels at 20% of the following month's sales. Inventory at the beginning of April is expected to amount to 72,000. 80% of inventory purchased is paid for in the month of purchase, with the balance paid in the following month. Trade payables are expected to be 45,000 on 1 April. 3. The company plan to apply for a local authority grant of 35,000, which they expect to receive in two equal instalments in April and June. The grant application fee of 1,500 will be paid in April. 4. K-Therm Ltd have received confirmation that their application for a bank loan of 45,000 has been approved. The loan will be drawn down in full on 1 April. They have negotiated interest only repayments at a rate of 10% per annum for the first year of the loan, payable monthly from May. Thereafter, they will start making capital repayments on the loan. 5. A dedicated sales person is due to commence with K-Therm Ltd on 1 March. They will receive a monthly salary of 2,000 plus sales commission of 0.5% of the total sales value for that month. Both the salary and the commission will be paid one month in arrears. 6. Equipment costing 48,000 will be purchased and paid for in May. K-Therm ple's policy is to depreciate equipment on a straight-line basis over five years. 7. Operating expenses are paid as incurred. Due to the implementation of operating efficiencies the budgeted expenses for April of 36,000, will decrease by 5% per month, thereafter. 8. The cash balance on 1 April 2021 is expected to amount to 8,000. Requirement: (a) Calculate the purchases figure for each month from April to June 2021. (b) Prepare a cash budget on a monthly basis and in total for the period April to June 2021. (c) What amounts will be included on the budgeted Statement of Financial Position at 30 June 2021 for: (i) Inventory 3 marks 14 marks (ii) Trade receivables (iii) Trade payables 3 marks Total 20 marks