QUESTION 2 [25 MARKS] Yovun, an IT specialist has started up a business on his own account and he invested $15,000 as starting capital. Yovun maintains a bank account showing a small credit balance, and he plans to approach his bank for the necessary additional finance. Yovun asks you for advice and provides the following additional information. 1. Arrangements have been made to purchase non-current assets costing $8,000. These will be paid for at the end of September and are expected to have a five- year life, at the end of which they will have a nil residual value. 2. Inventories costing $5,000 will be acquired on 28 September and subsequent monthly purchases will be at a level sufficient to replace forecast sales for the month. 3. Forecast monthly sales are $3,000 for October, $6,000 for November and December, and $10,500 from January 2022 onwards. 4. Selling price is fixed at the cost of inventory plus 50%. 5. Two months' credit will be allowed to customers but only one month's credit will be received from suppliers of inventory. 6. Running expenses, including rent but excluding depreciation of non-current assets, are estimated at $1,600 per month. 7. Yovun intends to make monthly cash drawings of $1,000. REQUIRED Prepare a cash budget for the six months to 31 March 2022.