QUESTION 2 CASH BUDGET REQUIRED Use the information provided below to prepare the Cash Budget for a project of Monoblock Limited for February, March and April 2019. (Use separate monetary columns for each month.) INFORMATION The cash balance on 31 January 2019 is expected to be R100 000 i. 2.Sales volumes from January to April 2019 are expected as follows: January February March April Units 2 500 3 000 3 200 3 400 The selling price is R200 per unit. Sixty percent (60%) of the sales are expected to be for cash. The balance is on credit and is expected to be collected in the following month. 4. There is no beginning or closing inventory of finished goods. Direct materials cost R40 per unit. Seventy percent (70%) of the direct materials purchased are paid for in the month of purchase in order to take advantage of a 5% cash discount. The balance is purchased on credit and is paid for in the month after the purchase 6. Direct labour costs are budgeted at R50 per unit and these costs are paid monthly 7. Fixed overheads, including R20 000 depreciation, are expected to amount to R120 000 each month and are paid for in the month in which they are incurred 8. Variable overhead costs are budgeted at R15 per unit and are paid in the month after they are incurred. 9 Fixed selling and administrative expenses are paid monthly and they total R30 000 per month. Variable selling and administrative expenses are budgeted at R6 per unit sold. Payment is delayed by one month. 10