Question 2 (25) Jenny is the owner of The Bride Boutique. The boutique sells well known brands of wedding dresses and related products Jenny recently attended a short course on financial management for SMEs. One of the topics covered in the programme was cash budgets Jerry wants to implement cash budgeting for the boutque and she prepared a cash budget for the period Apri- June 2020. However, she is still concerned that she may not have prepared the cash budget correctly and requested your assistance to help her prepare the cash budget At a meeting between Jenny and yourself, she provides you with the following information Actual and forecasted sales and purchases for the penod February - June 2020 February March April May June Actual) Actual) Forecast (Forecast Forecast) Total sales R950 DOO R1050 000 R1 200 000 R1 350 000 R1 100 000 Total purchases R760 DOO R892 500 R1 020 000 R945 000 R770.000 . - The boutiques monthly cash sales are 80% of its total monthly sales the balance being credit sales . The boutique's credit terms to customers requre that the customers settle their credit purchases by paying 70% of their outstanding balances one month after the month of purchase and the remaning balances two months after the month of purchase The boutique pays 30% of its monthly purchases in cash and the rest of the monthly purchases are made on credit. Jenny has to pay her suppliers 40% of the credit purchases one month after the month of purchase and the outstanding balance two months after the month of purchase Jenny plans to replace some of the display cabinets in July 2020 friend of hers who owns a jewelery shop will buy the cabinets from her for R15 000 in June 2020 and will pay her in cash The monthly wages and salaries are R12 000 and Jenny intends to grant an 8% increase in wages and salaries from May 2020. The monthly rent for the boutique promises is R25 000 while the business Insurance is R2 500 per month The insurer advised that an insurance premium increase of 10% will take effect as from 1 June 2020 Consumables average R1 500 per month and Jenny intends to spend R1 400, R2 500 and R1 500 on advertising in Aarl May, and June, respectively Jenny's tax advisor informed her that the boutique will have to pay tax af R46 000 to SARS in April 2020 . Required Prepare a cash budget for The Bride Boutique for the period Apri- June 2020 using the format for a detailed cash budget as presented in the prescribed textbook