v. QUESTION 3 Ansah Ltd, a dealer in stationery, operates across the 20 districts in and around the Ashanti Region of Ghana. As part of the requirement in securing a loan from ECOBANK, the bank requires a four months cash budget for review from the Company. You have been approached by the management of Ansah Ltd with the following information. i. Projected sales (2020) September October November December Projected Sales Units 9,000; 4,500; 6,000; and 6,500. ii. Selling price per unit of GHS8 is expected to increase to GHS10 taking effect in November iii. Payment for goods sold is as follows; Bad debt is estimated at 5% of sales; 10% is collected is the month of sales, 30% in the following month, and the remaining balance in the month thereafter. iv. Monthly expenses are estimated at 5% of sales revenue and are paid one month in arrears. The following goods are expected to be purchased at GHS5 per unit for the following months: September 5,000 units, October 3,500 units, November 2,200 units, and December 18,000 units. vi. 50% of goods purchased are paid in the month of incurrence and the rest paid in the next month. vii. The company is estimating to purchase 100 motorcycles at a cost of GHS15,500. 10% is expected to be paid in November and 20% in December viii. Cash balance from August is GHS18,000. Required: a. As a Consultant, prepare a cash budget for Zion Business Enterprise for the four months ending, September, October, November, and December 2020. (15 marks) b From the closing balance at end of each month advice management on monthly basis what should be done to ensure cash is not left ideal nor is there cash shortage (5 marks) (Total 20 marks) End of paper Examiner: Emmanuel Penney