Part 2: budget in a manufacturing context (9 points) The Chikin Corporation produces surfboards. Its sales have been 300 a month for the last few months- in February and March but it is about to launch an expansion strategy aimed at increasing sales by 50% over the next four months, Aprilto July. Sales in April are expected to still be 300 boards but to increase by 50 units a month until 450 units are sold in July and each subsequent month The selling price of the boards is S50 units a month and half the customers pay in the month following purchase. One-quarter take two months to pay and the other quarter pay cash on delivery, taking advantage of a 5% cash discount. Chinkin has planned an advertising campaign for the months of April, May and June, costing a total $40,000. Half this amount is payable in April and the remainder in two equal instalments in May and June To facilitate the increase in production, new plant and equipment costing 18.000S have been ordered for delivery in April, with payment in three equal monthly instalments, commencing in May To lessen the impact of acquiring these fixed assets, Chinkin plans to arrange a three-month loan of$20.000 from its bank and expects to pay interest at the rate of 10% per annum. The interest will be paid in one amount on the same day as the capital sum is repaid. The moncy is to be transferred into the account on 3 April. Raw materials cost $20 a unit and are paid for one month after purchase. Chinkin plans to have a monthly opening stock of raw materials equal to each month's production requirements. Similarly, its policy regarding stocks of finished boards is to have a monthly opening stock equal to each month's total sales. Monthly fixed costs for the period April-July, including depriciation of $600. total $6.200 and are paid for in the month incurred. The amount of depreciation includes the depreciation of the new equipment. The opening bank balance for April is expected to be $11.400 positive. Chinkin's current overdraft limit is $ 25,000. Requested: 1) Elaborate the income statement for the months April to July (cumulated 2) Calculate volume of production of finished products taking into account the stock policy for finished products 3) Calculate purchase of material taking into account the stock policy for raw matcrials 4) Calculate monthly cash flows for operating activities (April to July) 5) Calculate monthly cash flows for investing activities (April to July) 6) Calculate monthly cash flows for financing activities (April to July) 7) Comment on the cash situation at the end of July