QUESTION 1 Empire is a trading company and its budgeted data for the six months to March 2024 are given below: Description Oct $ Nov $ Dec $ Jan Feb Mar $ $ $ Credit sales 250,000 250,000 250,000 260,000 260,000 Cash sales 60,000 60,000 Credit purchases 170,000 180,000 65,000 180,000 280,000 75,000 80,000 90,000 200,000 200,000 200,000 Other operating costs 90,000 90,000 90,000 122,000 123,000 123,000 The following information is also available: 1. 80% of the value of credit sales is received in the month after sale, 10% two months after sale and 8% three months after sale. The balance is written off as a bad debt. 2. 75% of the value of credit purchases is paid in the month after purchase and the remaining 25% is paid two months after purchase. 3. Other operating cost includes a monthly depreciation of $10,000. 4. All other operating costs are paid in the month they are incurred. 5. Empire has placed an order for two delivery vans and that will cost $25,000 each. The scheduled payment date is in February 2024. 6. The cash balance on 1st January 2024 is estimated to be $15,000. Required: Prepare a cash budget for three months from January to March 2024. (20 Marks)