The management of Pillay Limited decided to compile monthly cash budgets from January 2019 onwards. They provide the following information: 1. Sales before any discounts were taken into account: Total R Cash R Credit R October 2020 (Actual) 560 000 .200 000 360 000 November 2020 (Actual) 710 000 290 000 420 000 December 2020 (Actual) 860 000 350 000 510 000 January 2021 (forecasted) 880 000 360 000 520 000 February 2021 (forecasted) 920 000 380 000 540 000 March 2021 (forecasted) 980 000 410 000 570 000 April 2021 (forecasted 1 060 000 450 000 610 000 The selling price and cost price per unit are R80 and R40 respectively. 2. The following discounts must be allowed on sales: 10% on cash sales 5% on credit sales if accounts are paid within 1 month after the month of sale 3. Accounts receivable normally settle their accounts as follows: 60% within 1 month after the month of sale 25% within 2 months after the month of sale 10% within 3 months after the month of sale 5% is irrecoverable 4. Budgeted indirect expenses: January 2021 R180 000 February 2021 R230 000 March 2021 R320 000 Indirect expenses include depreciation of R11 000 per month 5. Balances on 1 January 2021: Accounts payable R121 810 Inventory R254 000 Bank R87 500 6. All purchases are on credit. 75% of the purchases will be paid during the month of purchase and 25% will be paid during the ensuing month. A trade discount of 4% is allowed by suppliers on all payments during the month of purchase. 7. The expected closing inventory for each month is 4 000 units plus 10% of the ensuing months sales. 8. Provisional tax of R200 000 must be paid on the 28th February 2019. Required: Prepare the cash budget of Pillay Limited, in columnar form for January and February 2019. Show all calculations.