Question No 4: Oman Foods LLC expects to have OMR 5,000 cash in its Bank Account on 1st May 2020. During the period of May to December, the Company will be manufacturing mostly for regular orders only. (Nothing for any extraordinary orders) You are required to construct Cash Budget spreadsheet for the above period from the following projected information supplied to you. Months Units Sold Materials Purchased in Wage Labor Units Hours May 4,600 3,496 340 June 4,840 3,880 380 July 5,160 5,860 300 August 5,480 5,920 300 September 5,520 6,360 400 October 5,100 6,200 400 November 4,900 5,800 380 December 4,800 4,100 390 Additional Information regarding Selling price, Materials purchased and Labor hours per hour is as follows: Selling Price per unit sold is OMR 12. Materials purchased per unit is OMR 5 Wage rate per hour OMR 4 Payment Terms and Lag period conditions are listed below: (A) 70% of Sales are realized in the following month of sales, and the remaining in the subsequent month. (B) (C) (D) (E) (F) (G) 35% of Creditors for purchases are paid in the month of purchases and the balance of creditors will be disbursed in the second month. Wages are paid at the beginning of subsequent month. A sales commission of 5% on sales due two months after sales is payable. OMR 2,000, 12% Debentures were issued at a discount of 10% on 1 July 2020. 4,000 Equity shares of OMR 1.000 each were issued on 1st August 2020 at 5% premium. A Bank loan of OMR 12,000 is raised in May 2020. Interest on Bank Loan is payable semi-annually starting from October 4% p.a. (2 Marks)