Question 4 Viata Limited manufactures 64-bit microprocessors. The company ends year on 31 December. You heve been requested, just before the end to assist in the preparation of a cash flow forecast. The following infor available regarding the company's operations: Management belleves the 201 sales level and pattem are a reasonab)e 20X2 (the next year) sales. Sales in 20X1 were as follows: \begin{tabular}{|l|l|c|} \hline & & \\ \hline 201 & January & 140,000 \\ \hline & February & 170,000 \\ \hline & March & 260,000 \\ \hline & April & 245,000 \\ \hline & May & 200,000 \\ \hline & June & 120,000 \\ \hline & July & 150,000 \\ \hline & August & 150,000 \\ \hline & September & 130,000 \\ \hline & October & 130,000 \\ \hline & November & 100,000 \\ \hline & December & 250,000 \\ \hline \end{tabular} - Included in fixed costs is a depreciation charge of 1,500 per month. - Customers always pay as follows: (maximum 300 words) DuringmonthofsaleInthefrstsubsequentmonthInthesecondsubsequentmonthUncollectable60%30%8%2% Customers who pay their accounts within 20 days receive a cash discount of 5%. The cash discount is offered to 50% of customers who pay during the month of sale and 10% of customers who pay in the first subsequent month. - The cash balance at 1 January 202 is estimated to be 80,000. - Gross profit averages 40% of the selling price. Each month, the company's purchases of inventory are equal to 60% of the foliowing month's sales. Al purchases are paid for on the tenth day of the month following the purchase. - The estimated other expenses payable monthly are: FixedcostsVariablecosts40,000permonth20%ofgrosssalespayablethefollowingmonth