Question 2 Casual Ltd provides the following budgeted information for the six months ending 30 June 2015. Month January February March April May June Sales (units) 4000 4800 5000 4000 4400 5200 Wages ($) 60 000 75 000 85 000 90 000 94 000 96 000 Overhead expenses 50 000 62 000 75 000 60 000 70 000 82 000 Additional information: 1. Units are purchased at $150 each and purchasing is planned so that the inventory on hand at the end of a month is sufficient to meet the forecast sales target for the following one and a half months. 2. All sales are made on credit at $250 per unit. Payment for half a month's sales is received in the following month and the remainder in the month after that. 3. All purchases are made on credit terms and are paid for in the month following purchase. 4. Wages are paid for in the month in which they are incurred. A month credit is obtained on overhead expenses. 5. 6. Capital expenditure of $150 000 will be paid for in April. At 1 January 2015 it is expected that inventory will amount to 6000 units. At 1 March 2015 the estimated cash at the bank is $200 000 7. Required: (a) The purchases budget in units for the four months from January to April 2015 [8] (b) The cash Budget for the three months of March, April and May [17]