Question Three a) The following data was extracted from the books of Jubilee itd in relation to the last eight months (May-Dec) of 2019, (1) Month May June July Sales 75,000 75,000 1,50,000 Raw Materials 37,500 37,500 52,500 August September 2,25,000 3,00,000 3,67,500 127,500 97,500 67,500 October 1,50,000 November 1,50,000 December 1,37,500 (1) Collection estimates: 1 Within the month of sale: 5% 5 During the month following the sale: 80% - During the second month following the sale: 15% (3) 50% of the raw materials are paid for in the month of purchase and the other 50% are paid for in the month following the month of purchase. (4)Salary shs. 11,250, Lease payment shs. 3750, Misc. Exp.shs. 1150, are paid each month (5) Monthly Depreciation shs. 15,000 (6) Income tax shs. 26,250 each in September and December (7)Payment for research in October shs.75,000 (8) Opening Cash Balance on 19 July shs 55,000 and it's the company policy to maintain the minimum cash balance of shs 50,000 each month. Any overdraft will attract an interest of 8% pm any amount above the minimum will be invested in the short term securities in the month that follows Required Prepare a cash budget for the six months period- July to December 2019 (5 marks) b) In his study of The Impact of Budgets on jubilee Ltd, the researcher reported inter alia the following comment by a financial controller on the practice of participation in the setting of budgets in his company. 'We bring in the supervisors of budget areas, we tell them that we want their frank opinion but most of them just sit there and nod their heads. We know they're not coming out with exactly how they feel. I guess budgets scare them.' Required Suggest reasons why managers may be reluctant to participate fully in setting budgets, and suggest also unwanted side effects which may arise from the imposition of budgets by senior management