REQUIRED Prepare the Cash Budget for a project of Mega Enterprises for the period 01 June 2023 to 31 August 2023. (Note: The Cashbudget must reflect separate monetary columns for each month.) INFORMATION The following budgeted information was supplied by Mega Enterprises for one of its projects: 1. A favourable bank balance of R200 000 is expected on 31 May 2023. The expected monthly sales are as follows: C E 7. 6 May Juna July August 6 500 The selling price per unit is R300. All the units produced are sold in the same month. Cash sales usually make up 60% of the total sales. The balance of the sales is on credit. Debtors pay in the month after the sale. Material purchases are expected to be as follows. June July August 5 Labour costs amount to R70 per unit and are paid in the month in which they are incurred. Manufactuning overheads are budgeted at R74 000 per month, exduding R6 000 for depreciation on machinery. Manufacturing overheads are payable in the month in which they are incurred. Selling and administrative costs contain a fixed portion of R80 000 per month and a variable component of 20% of the monthly sales value. These costs are paid by the end of the applicable month. R480 000 R600 000 R640 000 R540 000 Forty percent (40%) of the material purchases is for cash and balance is paid for in the following month. Equipment with a cost price of R700 000 is to be purchased during June 2023. A deposit of 20% of the purchase price will be paid in the month of the purchase and the balance plus finance charges of R40 000 will be paid in twelve equal montly instalments commencing July 2023. Ten percent (10 ) of the sales value for each month will be invested in the following month,

eiromatrom 2. The expecled monthly ates are as folows: The soling price per unit is R300. Al the units produced are sold in the same month. 3. Cash salos usually make ip 60% of the total sales. The batsnce of the sains is on credt Debibrs poy in the monh after the sale. 4 Materisl purchases ace expected io be as follows: Foaty percent (40%) of the material purchases is bo cash and balance is pad for in the following month. 5. Labout cots amount to R70 per unit and are poid in the menth it which they se incuried. 6. Manubcturing overhesds are budgeted at R74 000 per month, exduding RS 000 lor deprebiabon on machinery. Marulachairg oveheads are payable in the monith in which they are incured. 7. Seling and adninistratve costs contain a fasd porton of RQO 000 per morth and a variable component d20% uf the nonithy sales value. These coss are paid by the end of the applacale mark. 8. Fqupitent wh a cost price of R700 000 is 10 be purctased during Jure 2023 . A depoait of 204 af