QUESTION ONE $[25]$The following budgeted information was supplied by Mini Projects for their small projectsportfolio:$1.$ A balance as per bank amounts to R$200000$ is expected on $31$ May$\mathrm{.}2.$ The expected monthly projects are as follows:ProjectsMay $4000$June $6000$July $6500$August $50003.$ The revenue per project is R$300\mathrm{.}4.$ Cash revenue usually make $60\%$ of the total revenue. The balance of the revenue is oncredit. Debtors pay in the month after the invoice$\mathrm{.}5.$ Purchases are expected to be as follows:May R$480000$June R$600000$July R$640000$August R$540000$Forty percent $(40\%)$ of the purchases is for cash and the balance is paid for in the followingmonth$\mathrm{.}6.$ Labour costs amounts to R$70$ per project and are paid in the month in which they areincurred$\mathrm{.}7.$ Manufacturing overheads are budgeted at R$74000$ per month, excluding R$6000$ fordepreciation on machinery. Manufacturing overheads are payable in the month in whichthey are incurred$\mathrm{.}8.$ Administration costs contain a fixed portion of R$80000$ per month and a variablecomponent of $20\%$ of the monthly revenue value. These costs are paid by the end of theapplicable month$\mathrm{.}9.$ Equipment with a cost price of R$700000$ is to be purchased during June. A deposit of $20\%$of the purchase price will be paid in the month of the purchase and the balance plus financecharges of R$40000$ will be paid in twelve equal monthly instalments commencing July.Required:Prepare the Cash Budget for June, July and August using separate columns for each month.QUESTION TWO $[20]$You are provided with the following information relating to Elta Projects Ltd:STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED $31$ DECEMBER $2023$RRevenue $?$Cost of revenue $(6765000)$Gross profit $1272500$Operating expenses $(922500)$Earnings before interest and tax $350000$Interest expense $?$Earnings before tax $227500$Company tax $?$Earnings after interest and tax $?$STATEMENT OF FINANCIAL POSITION AS AT $31$ DECEMBER $2023$Assets RNon$-$current assets $1462500$Current assets $3275000$Total assets $4737500$Equity and liabilitiesShareholders equity $1966500$Non$-$current liabilities $1282500$Current liabilities $1488500$Total equity and liabilities $4737500$Note: All the revenues were on credit. Company tax is calculated at $30\%$ of the pre$-$tax profit. Current assets include accounts receivable of R$1680000$ and inventories ofR$750000.$ The issued share capital of the company consisted of $100000$ ordinary shares.Required:Use the information provided above to answer the following questions:$2\mathrm{.}1$ Calculate the following ratios expressing answers to two decimal places:$2\mathrm{.}1\mathrm{.}1$ Gross profit margin $(2)2\mathrm{.}1\mathrm{.}2$ Total asset turnover $(2)2\mathrm{.}1\mathrm{.}3$ Return on equity $(2)2\mathrm{.}1\mathrm{.}4$ Current ratio $(2)2\mathrm{.}1\mathrm{.}5$ Debt$-$equity ratio $(2)2\mathrm{.}1\mathrm{.}6$ Earnings per share $(2)2\mathrm{.}1\mathrm{.}7$ Finance cost coverage $(2)2\mathrm{.}2$ Comment on the acid test ratio which was $1\mathrm{.}12$:$1$ in $2022$ and $1\mathrm{.}70$:$1$ in $2023.(4)2\mathrm{.}3$ Suggest two possible reasons for a drop in the gross profit margin ratio. $(2)$QUESTION THREE $[25]3\mathrm{.}1$ Analyse the implications of cost budgeting in project cost management. $(15)3\mathrm{.}2$ Distinguish between strategic and tactical investments. $(10)$