Question 5 (10 + 5 = 15 marks) Landmark Company obtained following financial information for August 2020: 1. August 1 opening cash balance $3,500 2. Expected sales $62,500 (half in cash, remainder on credit due in September) 3. Inventory purchases $42,000 (all in cash) 4. Payroll $1,000 5. Equipment purchase $10,000 (half in cash, remainder on credit due in September) 6. Rent $1,450 7. Depreciation on equipment $7,500 8. Outstanding receivables paid in cash $25,600 9. Utilities $4,500 Required: (a) Prepare a cash budget for August 2020 based on the information above. (b) Assume that actual financial results were obtained for August 2020 and payroll paid was $800. Determine the payroll variance, indicating whether it is favourable or unfavourable and suggest three reasons it may have occurred