Lisas Loaves has provided the following estimates relating to the first quarter of the financial year, the quarter beginning 1 July 2021 and ending 30 September 2021:

The cash balance at 1 July 2021 is expected to be $15,400.

Required

1. Prepare a Cash Budget for the quarter ending 30 September 2021.

ii.Based on your Cash Budget, comment on whether the business can afford to purchase a new delivery vehicle for $20,000 during this quarter.

Cash Sales Credit Sales Receipts from Debtors Wages paid Rent paid Utilities paid Administration paid Depreciation of machinery Receipt of Loan Credit Purchases Payment to Creditors $93,750 $62,500 $75,000 $68,750 $25,000 $11,250 $18,750 $6,250 $43,750 $81,250 $87,500