[Question 4 Jamdon Merchandising Company started January with a cash balance of $140 000. Currently She is making preparations for her cash budget and found the following details: month Dec Jan Feb March April May Units sold 10 000 11 000 12 000 12 400 11 200 13 600 a) The products are sold at $5 per unit and sales collections are as follows: 65% collected in the month of sale 35 % collected in the month after sale b) Sales agents are paid a commission of 2% of Sales which is paid one month after sale. c) The firm will replace some of its old machinery by selling old ones for S22 000 in February and purchase new ones for $ 30 000 in January but equal payments will be made in February and March d) Monthly operating expenses include Depreciation: $5000 per month, Stationary $3 000, Light and Water $10 000, Salaries for staff: $26 000, Provision for bad debt $4000. e) Products are purchased at a unit cost of $4 per unit paying 60% cash and the remainder the following month. Purchases are arranged such 20 % of the product sales in each month is kept as the closing stock for the previous month. 1) The salary expense will increase by 8% in February and 12% of old amount in March onward. REQUIRED: i) Prepare the Cash budget for January to April of 2014. Show all workings