Question 3 Jim Buston recently decided to establish a business supplying bottled water to companies in Maynooth. Jim has produced estimates for his business for the next 6 months as follows: He will commence trading on the 1st of July 2020, with capital of 41,500. (b) At the beginning of July, he will purchase a 'base' stock which will cost him 7,800. (c) He has estimated sales to be: July 12,000 August 25,000 September 32,000 October 48,000 November 60,000 December 60,000 (d) All sales will be made on credit. 75% of customers will pay him within one month and the balance will be received within the second month from the date of supply. His purchases will be at cost price, being 65% of his selling price. Unsold stock will be returned to the bottling company at the end of each month, so that his month-end closing stock is always zero. Apart from the purchase of initial stock, all purchases will be made from suppliers who will allow him one month's credit. He will spend 4,500 each month on advertising to ensure he reaches all the companies in the area. This cost will drop by 50% after the first three months as he would have captured most of the market within the first three months. The advertising campaign will stop after the first six months of operation. (h) A delivery truck will be purchased in July at the cost of 20,000 and modification costing 5,000 will be done immediately on the truck to ensure it is suitable for purpose. (1) Misc. expenses are expected to cost 500 each month for July, August and September, and 750 each month for October, November and December. ) A cash register will be purchased for cash in July at a cost of 7,500. (k) For the first six months, Jim will employ a receptionist to take calls since he will be on the move all the time. He/she will be placed on a salary of 1,500 per month. Requirement: Prepare a cash budget for the six months of operations. Show all workings clearly