Question 1 The following table shows the Actual and the Budget figures in $ on Sales, Purchases, Wages and Expenses for company ABC for 2019. Month Sales Purchases Wages Expenses Jan. (Actual) 80,000 45.000 20,000 5,000 Feb. (Actual) 80.000 40,000 18,000 6,000 March Budget 75,000 42.000 22,000 6,000 April Budget 90,000 50,000 24,000 6,000 May Budget 85,000 45,000 20,000 6,000 June Budget 80,000 35,000 18,000 6,000 You are further informed that: (a) Wages and expenses are paid in cash within the same month. (b) 10% of purchases are for cash in the same month and the remaining is paid in the next month. (c) 20% of Sales are for cash in the same month and the remaining is collected in the next month. (d) The accountant did not include in the projected expenses $500 each month for advertising. (e) Cash Balance on March 1, was $15,000 and the company wants to keep this figure at the end of every month, the excess cash being put in fixed deposits. Instructions: a. Prepare a Cash Budget of company ABC for March, April, May and June 2019 in a columnar form using the above information. (10 points) b. Identify which months company ABC will have fixed deposits and at which amount (2 points) C. Identify which months company ABC will have a balance below its target and at which amount (2 points) d. Explain the importance of a Cash Budget, what constitutes an efficient cash management and how the CFO should be prepared in advance for the months when balance is below target (6 points)