to drop or retain the wallpaper (1 marks) Question No. 3 HASF PVT.LTD BUDGETED INCOME STATEMENT FOR I" QUARTER 1999 Wapes Description JANUARY FEBRUARY MARCH Sales 25 000 323,000 221,000 Purchases 129.000 16.000 95.000 35.000 37,000 30,000 Supplies 26.000 23.000 | 0 Utilities 6.500 3,700 7,200 Rent 15.000 12.800 12.000 12.000 12.000 Advertising 24.500 28.500 18.00 Depreciati 20.000 20,000 20,000 Net Profit 17.000 13,000 3,700 Required: a. Please make a cash budget for the months of January, February and March 1999 based on the data for: (5 Marks) View Receivable Trend: 30% of Sales are collected in the month of sale 30% of Sales are collected after the month of sale 40% of Sales are collected two months after the sale is made View Payable Trend: 10% of Purchases are paid for in the month of purchase 35% of Purchases are paid after the month of purchase 55% of Purchases are paid two months after the purchase is made Additional Information: Rent and Insurance expense were prepaid at the end of 1998 . All other expenses are paid for in the month they were incurred November Sales = 195,000 . November Purchases = 100,000 December Sales E250,000 December Purchases - 165,000 . Please see attached Budgeted Income Statement for Ist Quarter 1999 b. Being a CFO of the company, interpret the importance budget in strategic and operational planning of the company (Word limit Max 150-200) (2 marks) Question No. 4