QUESTION 3 [20 MARKS a. Use the information below to construct a cash budget for the first four months of the year 2020. (16 marks) Cash balance as at 31/12/2019 was P5000 Interest on savings is P100 Long term loan taken in January 2020 was P25000, that will be paid in 5 years Loan repayment installment is P450 which will start end of February 2020 Revenue for January was P15 000, February P18 000, March P20 000, April P19 000 Salaries per month amount to P15 000 Rental payment per month is P3 500 Advertising and promotion is P1 000 paid once in two months Telephone expenses P500 Utilities estimated at P1000 per month Bought a second hand mini tractor for P15 000 cash in February 2020 b. Use the method of proportion to calculate WACC of company Z which have the following information. Ordinary share capital is 70%, preference share capital 10% and loan is 20%. Cost of ordinary shares is 12%, Preference shares is 8% while cost of debt is 11%. (4 marks)