Question 2: (8 marks) (C2, D3) Bahrain Company provided the following information: Statements Projected Credit Sales Projected Credit Purchases June 100,000 80,000 July 220,000 150,000 August 260,000 180,000 | Page 1 Bahrain Co. estimates that it will collect 40% of its sales in the month of sale, 35% in the month after the sale, and 22% in the second month following the sale. Three percent of all sales are estimated to be bad debts. Bahrain Co. pays 30% of merchandise purchases in the month purchased and 70% in the following month. The company expects to sell a car of its own in August in a value of BHD 25,000 The company expects to buy a land in July that will cost BHD 25,000; BHD 15,000 cash and BHD 10,000 will be paid in the next month. General operating expenses are budgeted to be BHD 18,000 per month. Bahrain Co. pays operating expenses in the month incurred. Bahrain Co. makes loan payments of BHD 3,000 per month of which BHD 400 is interest and the remainder is principal. The beginning cash balance of the company on 1st of August is BHD 1,000. The company's policy states to have a cash balance at the end of each month not less than BHD 40,000 Instructions: Prepare the cash budget for August, 2019