Problem 1 The following data relate to Bookshop Ltd: The financial manager has made the following sales forecasts for the first five months of the coming year, commencing from 1 April 2012: Month April Sales($) 40,000 May 45,000 June 55,000 July 60,000 August 50,000 Other data: (i) Debtors' and creditors' balance at the beginning of the year are $30,000 and $14,000,. The balance of other relevant assets and liabilities are: Cash Balance $7,500 Stock $51,000 Accrued Sales Commission $3,500 (ii) (iii) 40% sales are on cash basis. Credit sales are collected in the month following the sale. Cost of sales in 60 per cent on sales. (iv) The only other variable cost is a 5% commission to sales agents. The Sales Commission is paid in a month after it is earned. respectively (iv) (v) Inventory (stock) is kept equal to sales requirements for the next two month budgeted sales Trade creditors are paid in the following month after purchases. (vii) Fixed costs are $5,000 per month including $2,000 depreciation. You are required to prepare a cash budget for the months of April, May and June 2012, respectively.