Question 2.2 (11 Marks) Flour Ply (Ltd) is currently planning their cash requirements for the next quarter, April 2019 to June 2019 The company sells baking supplies on credit, leading to a constant flow of sales and payments from debtors with occasional large inflows when goods are supplied for large contracts The aging report on the accounting system of the company gives the following breakdown of collection from debtors 30% one month after the sales have taken place 70% two months after the sales have taken place Sales for the following quarter are estimated as follows R500 000 in April R400 000 in May R900 000 in June Further to this, e-mails from other branches and sales personnel indicate that the company can expect payments from large contracts worth R100 000 in April, R30 000 in May and R200 000 in June The sales for February was R400 000 and R600 000 for March Vanable costs related to sales equal 90% of the selling price, and the company has fixed expenses estimated at R200 000 every month The company had a cash balance of R50 000 at the end of March 2019 The company uses a R20 000 000 revolving credit facility to finance cash shortfalls which cost 1% per month and on which interest is paid on the opening balance every month Required: Compile a cash budget for Flour Pty (Ltd) for April to June 2019 and clearly indicate what amount of financing the company will require every month as well as the cost thereof