QUESTION 4 The manager of Boston Building Group Pty Ltd, is in the process of preparing the budgets for July 2019. The manager is trying to determine whether it will be possible to purchase new tools and equipment worth $15,000 in July. The tools and equipment are currently on sale for $15,000, but would cost $25,000 when the promotion ends on 31 July. The opening balance of cash is $4,150 at 1 July 2019. The following information has been obtained: Expected building services revenue for July $82,000. All building services are provided on credit and cash is collected in the month following. Building services revenue for June was $72,300 Payment of wages, $9,440 Administration expenses to be paid, $5,190 Paid insurance cover for the next six months, $12,000 Depreciation of assets, $15,000 Sale of old trailer for $1,500 cash Payments to creditors are expected to be 30% of building services revenue earned the previous month Other expenses to be incurred and paid in cash, $9,500 TASK (a) Please prepare a cash budget for July 2019 based on relevant information above. (7 points) (b) Explain whether you think the purchase of the new tools and equipment in July is possible. (3 points) (c) Assume that actual results were obtained for July 2019 and receipts from customers was $61,200. Determine the variance and suggest any implications for the business as a result. (5 points) (d) Assume that actual results were obtained for July 2019 and wages paid was $8,940. Determine the variance and suggest two reasons why it may have occurred. (5 points) (7+3+5+5= 20 Marks)