QUESTION 2 [20 MARKS] From the information of moon Ltd. Month Sales (P) Purchases Wages Selling Overhead (P) (P) Expenses (P) April 100 000 70 000 8500 3 500 4000 May 120 000 80 000 9500 3 500 4 500 June 140 000 90 000 9 500 3 500 6 000 July 160 000 100 000 12 000 3 500 6 500 August 180 000 110 000 14 000 3 500 7000 A sales commission of 5% on sales due 2 months after sales is payable in addition to the above selling expenses. Credit terms of sales are-payment by the end of the month following the month of supply. On average, one half of sales is paid on the due date, while the other half is paid during the next month. Creditors are paid during the month following the month of supply. Plant purchased in June P78 000 is payable on delivery P48 000 and balance in two equal monthly instalments, July and August. A dividend of P30 000 will be paid in September. Wages are paid ?4 on due date while %4 during the next month. Lag in payment of selling expenses and overheads is one month. REQUIRED: Prepare a cash budget for the month of June, July and August. Show all your workings. (20 marks)