Question One You have collated the data below, which will be used to prepare a cash budget and to manage the cash position of Bowman Lid for the last three months of the financial year to 30 April 2019. 10% of sales are cash sales, and the remainder are credit sales. Credit customers pay in the month following sale. Budgeted total sales, at a selling price of 13 per unit, for the four months to 30 April 2019 are: Month January February March Sales (Units) 28,000 36,000 32,000 39,000 Raw materials cost 8 per unit. Bowman pays for raw materials in the month following purchase. Bowman's policy is to maintain inventories of raw materials and finished goods sta constant level. Wages, budgeted to be 74,000 per month, are paid as they are incurred. Production overheads, excluding depreciation charges of 3,800, are budgeted to be 47,000 per month. Budgeted selling, distribution and administration overheads are 18.400 per month. Depreciation charges of 2,300 are not included in this figure All overheads are paid in the month after they are incurred. The company intends to pay 58,000 for a new machine in February 2019. The cash balance at the beginning of January 2019 was 3.600. Required: Prepare a monthly cash budget for the months of January February and March (16 marks) Advise the management of Bowman of action that should be taken in relation to cash management in response to the cash budget produced in (a) above. (5 marks) Calculate the figures for accounts receivable, accounts payable and accruals as at 30 April 2019, (4 marks) [Total: 25 marks]