Lotus Garden has prepared a Cash Budget for JANUARY, shown below

(Lotus Garden cash balance as at 31^st December 2020 is $5,000)

Lotus Garden Pty Ltd

Cash Budget

For the period ending January 2021

With reference to the Cash Budget shown above;

a. Provide Lotus Gardens management with the cash balance amount at the end of January. Indicate whether this is an acceptable situation. (1 mark)

b. Further make three (3) suggestions that may help Lotus Garden to improve their cash position (3 marks)