The question is :A. Prepare a cash budget for the second quarter of the year ending 30 june 2019B.comment on the position of the cash budget and suggest four ways that it could be improved (250 words max)

Question 3 Mark Rivers has recently retired from a career within a government department and plans to set-up his own souvenir shop. He plans to invest $20,000 ($10,000 each in January and April) in the new enterprise and has asked for your assistance to produce a cash budget as the bank has asked for that prior to approving his request for an overdraft facility for his business. The following has been budgeted for the first six months of the business: Month Sales Purchases Wages Fixed Variable costs costs January 3,000 2,000 1,500 5,000 1,600 February 6,000 4,000 1,500 1,600 March 6,600 4,400 2,200 1,680 April 7,800 5,200 2,200 10,000 1,760 May 9,000 6,000 2,500 1,820 June 10,500 7,500 2,400 2,000 The following additional information is available: i. 55% of each month sales are expected to be for cash. Credit customers pays a month in arrears. ii. Suppliers offer a month credit on purchases and are paid on time. iii. Wages, fixed costs (equipment purchase) and variable costs (rent and general admin expenses) are paid in the month they are incurred. iv. The bank balance as at 1 April 2019 is expected to be $1, 100