UESTION FIVE (20 Marks) Thohoyandou Manufacturers is preparing its budgets for the period 01 June to 32 October 2023. The following information has been drawn from the budgets prepared in the planning exercise so far: R Sales: June (estimate) 250 000 July (budget) 272 000 August 340 000 September 336 000 October 360 000 Direct labour costs June - August 10% of monthly sales September - October 12% of monthly sales Direct material purchases: June (estimate) 69 000 July (budget) 75 600 August 57 800 September 63 000 October 80 000 Additional information: Thohoyandou Manufacturers sells 10 per cent of its goods for cash. The 5% discount currently offered to cash buyers will end on 31 July 2023 and a 4% discount on cash sales will be implemented from 1 August 2023. The remainder of customers receive one months credit. There has been a change in payments terms: the current payment terms of two months following the month of purchase will end for all purchases at the close of business on 31 August 2023, and starting from 1 September 2023, material purchases will be paid in the month following the month of purchase. Material amounting to R70 000 were purchased in May 2023. Labour costs are paid as they are incurred. Thohoyandou Manufacturers takes one months credit on all overheads. Production overheads is R64 000 per month up to 31 July 2023 and R72 000 thereafter. Included in the amounts for production overhead are monthly depreciation charges of R6 000 Selling, distribution and administration overheads amount to R37 800 per month up to 31 July 2023 and R40 000 thereafter. Included in the amounts for production overhead are monthly depreciation charges of R4 000 Thohoyandou Manufacturers expects to purchase a delivery vehicle in August for a cash payment of R797 500. The cash balance at the end of June 2023 is forecast to be R69 700. Thohoyandou Manufacturers has an overdraft limit of R250 000. REQUIRED: 5.1 Prepare a Cash Budget for each of the months July to October 2023 (use separate monetary columns for each month). (16 Marks) 5.2 Comment briefly on any matters concerning the liquidity situation that you feel should be drawn to the attention of management.