Paris Ltd is growing business for the last five years. They are currently preparing their quarterly cash budget for the first three months starting on 1st January 2020. 1. Sales for the months of November 2019 and December 2019 were $120,000 and $150,000 respectively. Forecast sales for the first three months in year 2020 are as follows: January: $130,000, February: $160,000 and in March: $200,000 All sales are on the following terms: 30% on cash basis and 70% on credit terms. All credit sales are on average received as follows: 30% is received in the current month of sale, 30% is received in the next month of sales and the remaining 40% is received two months after the sale. 2. Goods are bought within the month of sale and costs 60% of the total sales value. Suppliers are paid one month after the goods are bought. 3. Other information are as follows: i. Selling & admin expenses of $30,000 per month are payable at each month-end. Included inside these expenses is an amount for depreciation charge of $5,000 per month. ii. The company intends to purchase a packing equipment in the month of February for $100,000 and a 50% down payment of will be paid immediately. Monthly instalment of $10,000 will commence from March 2020. iii. Electricity and telephone charges incurred will be $4,200 for December 2019, $5,100 for January 2010, $6,300 for February 2020 and $7,500 in March 2010. These are paid in arrears by one month. iv. Fixed deposit interest of $2,000 is receivable for every quarter in advance, in the months of January, April, July and October. v. Rent of $4,000 per month will be paid on the 5th of every month to the landlord. vi. Bank balance in the accounting books on 31/12/2019 is at $16,000 (debit balance). Required: Prepare a monthly cash budget for the period 1st January 2020 to 31st March 2020. Assume that overdraft facilities will be available, if needed. (20 marks) (Total: 20 marks)