QUESTION FOUR Famile Itd will commence business only providing a mobile weary nice to the Farming community. The following information has been estimated Cash of C5,000 and equipment worth 1.000 will be invested in the business by the wat July 1". The business wil operate by changing farmers per hour. It is estimated that there will be 140 chargeable hours in the first month and 240 charpeable hours per month thereafter. The anticipated rate per hour is A veterinary assistant will be employed from 19 August at salary of C12.000 per payable monthly as incurred Medicines and other materiale estimated to cost per hour. Initial stocks costing 1.200 will be purchased for cash the commencement of business. This level of stock wilhe maintained throughout Suppliers will allow a month's creditonal purchases, after the initial opening stock which must be paid for inch A second-hand jeep will be purchased at the commenc depreciate at a rate of 25% per annum, straight line ent of business for 3,000. This will Office services will be provided by a local agency Initial posts will amount to ESO the fust month and 6250 thereafter Office services must be paid for in the month the service is provided Insurance of per quarter will be able in advance General overheads of c150 per month will be payable as incurred. The vet wil draw 0 per months was Clients are expected to settle their accounts as follows: 60 of farmers will pay immediately the balance will be required to pay within one month of debtors are estimated as bad debts. REQUIRED al Prepare a detailed cash budget for these month period for each of the six months from 1 July to 31 December 2011 30 Mars b) identify and describe si different purposes of budgeting (10 Marks Describe how the different purposes of budgets can conflict with each other (10 Marks TOTAL: 50 MARKS Page Soft