You are the manager of Fantastic Fencing who are in the business of selling fencing and landscaping to high end customers. At 1 April 2021, the business had a bank balance of $75,000. Provided below are estimates for receipts and payments for the three months ending 30 June 2021.

Fantastic Fencing April May June $ $ $

Receipts
Sales	620,000	680,000	640,000
Proceeds from the sale of old non-curent assets		205,000
Payments
Salaries and wages	225,000	250,000	235,000
Supplies	155,000	175,000	165,000
New equipment	165,000
Purchase of plants	115,000	130,000	120,000

Credit Sales are received as follows:

50% in month of sale

30% in month following sale

20% in second month following sale

Required (approximately 250 words):

a) You are to prepare a monthly Cash Budget for the three months ending 30 June 2021 to calculate an expected cash at bank figure which your accountant will review. Please ensure you include an overall total column and show all your workings as marks are allocated between workings and the final answer. Note: It is recommended you compile your cash budget in excel and copy it into your word report.

b) Explain the importance of the Cash Budget to the business and how it helps the business to manage its finances.

c) Based on the budget you have compiled, draw an overall conclusion as to the current cash position of Fantastic Fencing. This answer will be reviewed based on the calculations you have compiled so please ensure your answer is consistent with your figures.