1. 2. 3. 5. 6. 7. 8. 10. Use the information provided below to prepare the Cash Budget of Project Spa for Ubuhle Ltd for January, February and March 2020. (Use separate monetary columns for each month.) INFORMATION The budgeted sales schedule for Project Spa for the five months ended 31 March 2020 is as follows: November 2019 December 2019 January 2020 February 2020 March 2020 R150 000 R220 000 R140 000 R130 000 R150 000 Cash sales account for 60% of the total sales. The balance of the sales is on credit and these customers pay two months after the sale. The monthly purchase of materials is expected to equal to 25% of the sales value of the same month but is paid for one month after the purchase. Fixed costs are estimated at R20 000 per month and they are payable in the month in which they are incurred. Variable production overheads are budgeted at R30 000 for January 2020 and are expected to increase by 10% each month. Marketing overheads are estimated 8% of the sales value of each month. Marketing overheads are paid for in the month after they are incurred. Production salaries and wages are expected to amount to R40 000 per month and are paid for in the applicable month. An increase of 7% is expected to take effect on 01 February 2020. A machine that costs R60 000 is expected to be purchased on credit on 29 February 2020. A deposit of R15 000 will be paid on 29 February 2020 and the balance will be paid in 5 equal monthly instalments commencing March 2020. Interest at a rate of 15% per year is payable monthly on a loan from Tec Bank. The loan balance is expected to be R120 000 on 01 January 2020. The loan agreement stipulates that instalments of R10 000 plus interest be made at the end of each month. A favourable bank balance of R50 000 is expected for Project Spa on 31 December 2019.