4 (8 + 2 = 10 marks) a. The following budgeted sales and purchases data have been compiled for the preparation of the cash budget for Zenith Pty Limited for July 2021: Sales Purchases April $ May June July $ $ $ 180,000 150,000 160,000 200,000 90,000 70,000 90,000 120,000 Additional Information 90% of sales are sales on credit and 10% are cash sales. Cash collections from credit customers are as follows: . 70% in the month following the sale 20% two months after the sale 10% three months after the sale. All purchases are made on credit and payments are made as follows: 20% of purchases are paid for in the month of purchase 80% of purchases are paid for in the month following the purchase. Equipment costing $50,000 is expected to be bought in June and paid for in July. A loan of $60,000 will be taken out in July 2021 to allow for business expansion to be undertaken over the next few months. Selling and distribution expenses are $40,000 per month. General and administrative expenses are $35,000 per month. This includes $3,000 per month for assets depreciation expense. Expenses are paid in the month they are incurred. The cash balance on 1st July 2021 is expected to be $14,000. Required: Prepare a cash budget for the month of July 2021. (8 marks)