Question 1: Huzaifa Company Ltd is preparing Cash budget for his business for the second Quarter of the year - 1978. The assumptions made in relation to preparing a Cash budget are given below: Cash Inflows /Outflows April May June Total cash receipts $200,000 $250,000 $280,000 Cash disbursements: Salaries expenses 100,000 95,000 70,000 Purchase of Inventory 110,000 95,000 90,000 Rent expense 25,000 25,000 25,000 Administrative expense 15,000 15,000 15,000 Total disbursements $250,000 $230,000 $200,000 Additional Information: The company has made arrangement with the local bank and it allows the company to borrow up $200,000 at rate of 12% per annum, the money borrows normally first day of the month and repayment is made last day of the month. In addition to total cash disbursements, the company will declare dividend $25,000 to the shareholders on 15 May. The company maintains a minimum cash balance of $40,000 each month. The closing balance of cash at end of March was $40,000. Note, the dividend will be paid 30 days since the date of declaration. Required: Prepare Huzaifa Company Ltd Cash budget for the month April and May. [ 8 marks ]