Question 3: Cash budget _(Total: 17 marks)~ 12 (a) The following information relates to Parne] Limited:

Question 3: Cash budget (a) The following information relates to Limited:e Month*' F ebruary Maye Junee Julye Auguste September: Wages incurrede I lez loe 13+2 I lez loe loe Material purchasese soooe 25+2 35e_, 25+2 25+2 40 I. 17 marks)e Overheade Salese soooe soooe 14+2 40-2 18+2 60+2 16+-2 70+2 16+-2 60+2 15e_, 16+-2 It is expected that the cash balance on 30 June will be $21,000e The wages may be assumed to be paid within the month they are incurrede (iii) (v) (vi) (vii) (viii) (ix) (x) (xi) It is company policy to pay creditors for materials three months after receipt of the goods Debtors (Accounts Receivables) are expected to pay as follows:e One month aner the sale 50% Two months after the 40% Three months after the sale 8% e All receipts from debtors one month after the sale are entitled to a 5% discount. Included in the overhead figures is $3,000 per month which represents depreciation on two cars and one delivery van There is one month delay paymg the overhead expenses 10% of the monthly sales are for cash and 90% are sold on credi A commission of 50/0 is paid to agents on all the sales on credit but this is not paid until the month following the sales to which it relates; this expense is not included in the overhead figures shown. It is intended to repay a loan of S25 on 30 July Delivery is expected in August of a new machine costing $55,000 of which be paid on delivery- and the balance will be split over the following two months the following two months. Assume that overdraft facilities are available if needed. R red: (a)Prepare a cash budget for each of the two months of July and August. (12 Marks) e