Question 2 Golf Plus have provided you with their budgeted income statement that includes the following data: Golf Plus Income statement Sep Oct Nov Dec Sales $ 120,000 $110,000 $165,000 $180,000 Materials expense-30% of sales $ 36,000 $45,000 $49,500 $57,000 Wages expense $ 70,000 $82,000 $88,000 $92,000 Rent expense $ 15,000 $15,000 $15,000 $15,000 Utilities expense $ 1,700 $1,900 $2,000 $2,200 Insurance expense $ 2,100 $2,100 $2,100 $2,100 The following assumptions regarding the budget are as follows: Cash sales are 30% and credit sales are 70% of the business . Collection of the credit sales are 30% in the month of sale, 40% in the next month and 20% in the second month after the sale. 10% of the sales are not collectable. Credit sales for August are $70,000 . Materials expenses, 40% will be paid in the month that they were incurred and 60% will be paid in the following month. 25% of the wages expense will be paid in the month incurred and 75% will be paid one month later. Insurance was prepaid for the upcoming year in August. Purchase of new van for deliveries in November $35,000. The expected useful life of the van is 5 years. Rent and utilities are paid in the month that they were incurred. The cash balance on the 30 September was $20,000. Required: Show all workings and calculations where required, including a schedule for sales and credit sales. Prepare a cash budget for each of the months October, November and December for Golf Plus. (10 marks) Question 3 a) Provide a brief explanation as to the status of the cash budget and outline two (2) key areas that you think Golf Plus should focus on potentially improving. (5 marks) b) Examine any financing needs that Golf Plus may require and provide recommendations as to what sources would be appropriate for them to consider investigating. Please provide detailed and comprehensive justifications in your answer. (5 marks)