QUESTION 2 REQUIRED Prepare the Cash Budget for January, February and March 2021. (Provide separate monetary columns for each month.) INFORMATION Ricoh Limited is planning the business activities of Project Haz for the first three months of 2021. Some of the items in the Statement of Financial Position as at 31 December 2020 are expected to be as follows: Current assets R Debtors/Accounts receivable 600 000 Bank 20 000 Current liabilities Creditors (for material purchases) 100 000 Additional information The following forecasts have been made by Ricoh Limited for the first three months of 2021: 1. The costs of production include the following: Direct materials R26 per unit Direct labour R22 per unit 2. The sales manager anticipates the following sales volumes at a constant price of R160 per unit: January February March 2 300 units 2 500 units 3 400 units All the sales are on credit and debtors pay their accounts in the month after the sale. 3. The purchases manager expects to purchase materials to manufacture the following quantities of the product each month: January March February 2 600 units 2 400 units 3 500 units No inventories of materials are held at the end of each month. 4. 5. All materials are purchased on one month's credit. Direct labour costs are incurred line with production and are paid during the month in which they are incurred. Variable overheads are budgeted at R13 per unit. Fixed overheads are forecast at R50 000 per month. 6. 7. Overheads are payable in the month i which they are incurred. The company will take a loan of R200 000 on 01 March 2021 in order to expand the project. Repayments of R5 000 per month plus interest at 15% per annum is payable at the end of each month, commencing March 2021. The directors intend to spend R150 000 cash on new machinery during March. Leasing payments cost R84 000 per year, payable monthly. 8. 9