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Required: 1. Prepare a monthly cash budget for the FOUR months from 01 September 2022 to 31 December 2022 for Bemus Ltd using the information

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Required: 1. Prepare a monthly cash budget for the FOUR months from 01 September 2022 to 31 December 2022 for Bemus Ltd using the information below. 2. Prepare an analytical document for David Bemus outlining any observations or recommendations that you would make to the management of Bemus Ltd arising from your analysis. Bemus Ltd is a high street store operating in Bern-On-Sea for the last three years. David Bemus - the CEO is concerened about the companys liquidity of the business and has asked you to prepare a Budgeted Cash Flow for 4 months ending December 2022. He has provided you with the following: 1. All sales are on credit. It is expected that 30% of customers will take advantage of the cash discount of 2.5% that Bemus Ltd offers and will pay in the month of sale. Of the remaining 70%, it is expected that half will pay in the month after sale and the remainder will pay two months after sale. II. One supplier of Bemus Ltd, purchases of goods for resale, demands that he is paid cash immediately. This supplier accounts for 20% of all monthly purchases. The other suppliers are paid one month after the purchase has taken place. III. Overheads are paid in the month they are incurred. IV. The annual rent is 156,000 payable quarterly in advance on the first of: January; April; July; October. On 01 October 2022 the landlord is expected to exercise the right to increase rent by 10% V. In October 2022, Bemus Ltd intends to purchase three delivery vans at a cost of 22,800 each. He intends to trade in the two older vans he currently owns as part-payment for the three new vans. The two older vans have a net book value of 6,000 each. Bemus is expecting this figure to be true at the time of the trade-in. VI. Bemus Ltd is planning to change the old shop fitting at a total cost of 38,000. They will buy the shop fittings in September 2022 for 24,000. The installation cost of 14,000 is to be paid in November 2022 after the fittings have been completed. VII. He expects his bank balance to be 26,500 on 31 August 2022. VIII. Bemus daughter works in the store; she is paid an annual salary of 28,800

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