QUESTION 1: (25 MARKS) Strasburg Company operates a retail business, buying and reselling assorted footwear. Purchases are later sold at cost plus 25%. The management team are preparing the cash budget for 2021 and have gathered the data below. i) The budgeted sales (in Rs) are as follows: Sales (Rs) 1,000,000 Month January February 900,000 March 1,250,000 April 1,400,000 May 1,325,000 June 1,562,500 July 1,437,500 August 1,187,500 September 1,625,000 ii) It is management policy to hold inventory at the end of each month, which is sufficient to meet sales demand in the next half month. Sales are budgeted to occur evenly during each month. iii) Suppliers are paid 50% in the month of purchase and the balance in the month after purchase. iv) 15% of the total sales are on cash and the remainder on credit. Credit sales are paid for as follows: Following month after sale 60% Second month after sale 20% Third month after sale 16% Bad debts 4% v) Labour is 10% of cost of sales and is paid for in the month that it is incurred. vi) Production overheads are cash related and are 70% of labour cost. vii) Overheads are paid 30% in the month they are incurred and the balance the following month. viii) Some property was disposed of on 28 August 2021, and a cash amount of Rs1,076,800 will be available on 1 January 2022. Financial & Managerial Accounting (ACCF 5103/ACCFS101) Rigz-Feb/Mar2023Ex-FMA Page 2 of 9 Required: (a) Prepare Strasburg Company's cash budget for the eight (8) months to 31 August 2021. (20 marks)