William has recently decided to set up in business using his lottery winnings. His bank manager has asked to see him, as he is concerned that his overdraft has been increasing. William has asked you to help him prepare a cash budget to show to the bank manager. Expected sales from May to November 2020 are as follows: May June July Aug Sept Oct Nov 19,000 31,000 25,000 19,000 23,000 25,000 41,000 60% of sales are received as cash in the month of sale, and the other 40% is received in the month following. William will receive 15,000 from an insurance policy in August. Purchases are made one month in advance and represent 70% of sales value, these are paid for in the month following the order date. Wages are 5,800 per month, paid in the month incurred. General expenses are 1,500 per month, payable one month after they are incurred. Advertising will total 650 per month in July, August and September. William will pay himself 1,200 per month. A tax bill of 6,000 is due in September. William's owes the bank 8,000 at the end of May. Required: a) Prepare a cash budget for the four months June to September. Indicate your main findings from the cash budget, and briefly discuss the implications for William's meeting with the bank manager. (15 marks) b) What advice would you offer to William if he had to pay a service charge for his overdraft