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Please answer all the parts - Answers will not be accepted if any of the part is missing QUESTION 5 (20) 5.1 REQUIRED Study the

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QUESTION 5 (20) 5.1 REQUIRED Study the information given below and prepare the following budgets for January, February and March 2018 (3 monetary columns are required): 5.1.1 Production Budget (answer in units) (4) 5.1.2 Material Purchases Budget (answer in Rands)(6) INFORMATION Furnisure Limited produces tables. The sales budget for the first five months of 2018 shows the following projections: Month Units January 5000 February 5 400 March 6400 April 5700 May 6 200 The desired quantity of finished goods inventory at the end of each month is to be equal to 20% of the next month's budgeted unit sales. Each unit of finished product required 2 square metres of timber. The company wants to have an inventory the end of each month equal to 25% of the next month's required materials. Each square metre oftimber costs R50. 5.2 REQUIRED Use the information provided below to calculate the following: 5.2.1 Accounting Rate of Return on average investment (answer expressed to 2 decimal places). (5) 5.2.2 Net Present Value (amounts rounded off to the nearest rand). (5) INFORMATION Premier Printers is considering the purchase of a new printing machine and has a minimum required rate of return of 129%. The machine will cost R625 000 and will have a useful life of 5 years. The machine is expected to have a scrap value of R25 000. The machine is expected to increase revenues by R200 000 per year but will require maintenance and repairs averaging R30 000 per year. Depreciation is estimated at R120 000 per year

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