Part A (Cash budget] Skating outlets purchase skating boards from Ricket Ltd throughout the year. However, in anticipation of late summer and early autumn purchases, skating outlets upgrade their inventories from November through February. Skating outlets are billed when boards are ordered. Invoices are payable within 90 days. From past experience, Ricket Ltd's accountant projects 20% of invoices are paid in the month invoiced, 50% are paid in the following month and 30% of invoices are paid two months after the month of invoice. The average selling price per skate board is $700. Relevant information regarding sales, direct material, labour, overhead expenses and cash are as follows: (a)Projected Sales May 80 Units June 120 Units July 200 Units August 100 Units September 60 Units October 40 Units (b) Direct materials and direct manufacturing labour utilisation and cost Units per board Price per unit Wood (Board metres) 1.25 $120 Fibreglass (Metre) 4.8 6.25 Direct Manufacturing labour (Hours) 5 50 (c) To meet demand, Ricket Ltd increases production from April through July. To facilitate sales, an equal number of skate boards are produced a month prior to their projected sale. Direct materials are purchased in the month of production and are paid for during the following month (terms are payment in full within 30 days of the invoice date). During this period there is no production for inventory, and no materials are purchased for inventory. (d) Direct manufacturing labour and manufacturing overhead are paid monthly. Variable manufacturing overhead is incurred at the rate of $14 per direct manufacturing labour-hour. Variable marketing costs are driven by the number of sales visits. However, there are no sales visits during the months studied. Ricket Ltd also incurs fixed manufacturing overhead costs of $11,000 per month and fixed non- manufacturing overhead costs of $2500 per month. (e) The beginning cash balance for 15 July 2020 is $10,000. On 19 October 2019, Ricket Ltd had a shortage of cash and borrowed $30,000 on a 6% one-year note with interest payable monthly. The note is due 1* October 2020. Using the information provided, you will need to determine whether Ricket Ltd will be in a position to pay off this short-term debton 1* October 2020. Required Question 3.1 Prepare a Cash budget for the months of July to September 2020. Show your workings. (12 marks) Your Answer (add extra rows/columns to the template if required): July August September Total e e e e e e Show your workings here (expand the space as required): Lt