Toggel Limited is in the business of sale and distribution of computer software. The company collates the following data to prepare its cash budget for the 6 months ended 30 September 2019. Sales for the 6 months are expected to rise by 3% month-on-month. The sales expected for 30 September 2019 is $2 million. The bank balance on 1 April 2019 is expected to be $50,000. Out of the 80% of sales that are on credit, 3% of debtors is expected not to pay up while 80% will pay up one month after sale and the remaining will pay two months after sale (assume nil sales before 1 April 2019). Research and developments costs are estimated at $550,000 per month while depreciation expense on its equipment is expected to be $250,000 per month. Staff costs is divided into permanent and temporary staff. The permanent staff wages averages $280,000 per month while temporary staffs are employed only from April to June 2019 to cope with the seasonal increases in sales. Temporary staff are paid 2% of sales each month. The company expects to replace its computers in the month of August 2019 and this is expected to cost $1,000,000. Rental of its business premise is prepaid in January each year at $60,000 annually. Required: a. Prepare the cash budget for the period 1 April 2014 to 30 September 2014 for Toggel Limited. (27 marks) b. Evaluate the benefits and problems associated with the participative style of setting the budget. References and Format (3 marks) [Total: 40 marks] (10 marks)