Question 6 The Comet Ltd budgeted profit and loss statement disclose the followings: Time left 2:28:34 Not yet answered Sales Purchases Expenses Marked out of April $420,000 $190,000 $74,000 10.00 May $630,000 $250,000 $84,000 P Flag question June $560,000 $224,000 $80,000 (a) Sales are collected 65% in the month of sale, 20% in the following month of sale and 15% in the second following month of sale. No bad debts. (b) Comet pays purchases 75% in the month of sale and 25% in the following month of sale. (c)On 1 April, the accounts receivable balance was $360000, to be collected $240000 in April and the reminder in May. (d) Comet had $80000 accounts payable on 1 April. (e) Cash balance 1 April was $106000. (f) The expenses are paid for in the month incurred and included $14000 depreciation expense. Required: 1- Prepare a cash budget from April to June. (9 marks) 2- Will Comet Lid have enough cash to buy a piece of equipment in July with the price of $110,000. (1 Mark)