The following information relates to KITCHEN CRAZE Plc and you have been requested by Peter Griffin, Managing director to produce a next six month cash budget. Information to assist with this task is given below. REQUIRED to: a. Produce cash budget for KITCHEN CRAZE PIC for the next 6 months. A template is available on "BAM4010 AS1 Answer Template" Format the worksheet by resizing the rows and formatting the total numbers as currency. b. Comment on the cash budget forecast, and state whether you think that the company remains viable. Consider the budget v actual for Aug 21 in your comments. INFORMATION: The directors have declared half yearly dividend to be paid out in November resulting in a total dividend pay-out of 10 million. All factory cash sales are forecast as follows: June 29.500 f July 36,875 Aug Sept 44,250 51,625 Oct 59,000 f Nov 73,750 It is the company policy for all trade customers to pay within 30 days, however, in practice this do not hold. Therefore the forecast for trade receivables continue to be received haphazardly and the expected income receipts are as follows: June July Aug Sept Oct Nov 2,000,000 2,554,000 1,679,875 f 368,550 439,425 510,300 The investment on the SoFP represents shares in Barratt Development which is expected to grow by 3% before it is sold and credited to the current account inJuly: 1,030,000. Payments to creditors are on 30 days End of Month (EOM), will be paid at the end of the following month from the date of invoice. A cupboard unit is called a cabinet. Each cabinet uses 5 metres of material (processed MFC). The cost of a metre of MFC is expected to remain at 20 per metre for the next six months and is brought on credit. Payments are therefore forecast as follows: June 300,000 July 376,000 Aug 118,750 Sept 142,500 Oct 166,250 Nov 190,000 Material purchased are as follows and are paid in the month of purchase: June 4,000 July 6,250 Aug 7,500 Sept 8,750 Oct 10,000 Nov 12,500 A cabinet takes 2 hours to make and direct labour rate is 25 per hour which will remain in force for the next six months. Labour is paid in the month it is incurred. Production labour cost is ten times more than the material purchase cost, for the same month. Fixed production overheads are expected to be 42,000 per month with the first payment due in June and is consistent for the whole 6-month period, which includes depreciation of 10,000: Building - 7,000 and plant and machinery 25,000. KITCHEN Craze operates a just-in-time inventory system for both raw material and finished goods, therefore, it is expected that little or no material, work-in-progress or finished cabinet inventory will be held for the next six (6) months. Sales department costs are expected to be fixed and include 30,000 rent for the promotion tent at the National Trade Show. This monthly cost also covered the expenses to remove and relocate the standto the next site plus the sales team remuneration costs.