Question 4 (25 Marks, 45 Minutes) The finance manager of Mpandu CC wishes to determine the cash requirements for the last three months of the year ending 31 December 2018. She has provided the following data. Materials Production Total Sales purchases Overheads September 52 000 24 000 4 400 3 300 54 000 18 000 4 600 3 300 4 Other relevant information: 1. Debtors' collection estimates: - 5% during the month of sales a 80% during the month following the sales . 15% during the second month following the sales 2. Payment to suppliers for materials is made as follows: 0 50% in following month of purchase - 50% in the second month following the material purchases Wages and production are paid in the month they are incurred. The business has N33 100 000, 15% loan from West Bank. Annual interest is to be paid on 31 December 2018. An old equipment will be sold in November for N$ 5 000. Selling & distribution overheads paid are 10% of sales of the previous month. VAT is paid as follows: N$ 7 560 in November and N$ 8 623 in December. Lucia, a member has decided to increase her contribution in the business by N$ 10 000 on 1 October 2018. 9. Depreciation l5 N$ 300 per month and 13 included' in production overheads. 10. The opening balance on 1 October lS N33 2 500. PS\" PONP'F" REQUIRED: 4.1 Cash budget for the three months ending 31 December 2018 What would you advice the management of Mpandu CC based on the closing balance on 31 December 2018 TOTAL MARKS 4.2