Q4. Tulip Company is organizing a sport event and intends to purchase t-shirts and print them with a logo for the event. The following information are provided to you: Sales The commemorative t-shirts will be sold for RM16 each and predicted sales are as follows: July 6,000 t-shirts August 12,000 t-shirts September 13,500 t-shirts One third of sales will be in cash. The remainder will be on credit with the customer paying the month after sale. Purchases The t-shirts will cost RM12 each and will be purchased in the month prior to sale. It is expected that 10% of the t-shirts purchased will be damaged during the printing process and will not be suitable for sale. The supplier has offered two months credit. Capital investment To print the t-shirts with the logo of the sporting event will require the purchase of a machine costing RM27.000. The machine will be bought at the start of the project and paid for in August. The machine will have a five-year useful life but no expected residual value. Expenses Expenses, excluding advertising, of RM38.000 per month will be incurred each month and paid in the month incurred. Advertising costs of RM7.950 per month will be incurred in each of the months July, August and September and will be paid one month in arrears. Required: (a) Produce a cash budget for the project for each of the three months July, August and September (b) From the cash budget in (a), identify potential cash flow problems and how it could be solved. (c) From the cash budget, identify an example of fixed costs and a variable cost