Answer ALL questions in this Section Question 1 MeFadden Limited manufactures bags of animal feed which they sell to co-operatives for 12.50 per bag Relevant extracts from the most recent Statement of Financial Position as at 31" May 2017 are as follows: Extract - Statement of Financial Position at 31/5/2017 April sales 270,000 Trade receivables May sales 360,000 Rent prepayment 15,000 Cash in hand 18,750 Suppliers of raw materials (376,000) Trade payables PRSI - April liability (14,250) PRSI - May liability (15,300) Light and heat accrual (9,000) McFadden Ltd produces its animal feed one month in advance of sales. Raw materials are purchased one month before they are required for production. The supplier of chemicals allows McFadden Ltd one month's credit Per bag Cost Prices from 1 July 2017 Molasses 4 litres 0.75 per litre 0.10 per litre increase Wheat and Oat blend 6 kgs 0.40 per kg 25% reduction McFadden Ltd budgets to sell the following quantities in the next four months: Projected sales Bags June 2017 75,000 July 2017 90,000 August 2017 105,000 September 2017 120,000 40% of customers pay cash on delivery and avail of a 2% discount, with all remaining customers settling in full two months after the sale. Their factory costs 9,000 per month to light and heat. Light and heat bills are paid one month in arrears. The annual factory rental of 120,000 is paid in four even instalments quarterly on the 1st January, 1" April, 1" July and 1" October McFadden Ltd employs fifteen staff at an average cost of 1,020 each per week (assume a four week month). Three quarters of total wages costs are paid in month incurred, with the balance representing PRSI contributions paid two months in arrears to the Revenue authorities. Requirement: (a) Calculate the receipts (cash and credit) from sales for each of the months of June, July and August 2017 3 marks (b) Prepare a purchases budget (quantities and cost) for molasses and wheat and oat blend for each of the months of June and July 2017. 6 marks (e) Prepare a cash budget for each of the three month's June, July and August 2017 6 marks