QUESTION 2 [18 MARKS] AM is a trading entity. Purchases are on credit, with 70% paid in the month following the date of purchase and 30% paid in the month after that. Sales are partly on credit and partly for cash. Customers who receive credit are given 30 days to pay. On average 60% pay within 30 days, 30% pay between 30 and 60 days and 5% pay between 60 and 90 days. The balance is written off as irrecoverable. Other overheads, including salaries, are paid within the month incurred. AM plan to purchase new equipment at the end of June 2015, the expected cost of which is P250,000. The equipment will be purchases on 30 days credit, payable at the end of July. The cash balance on 1 May 2015 is P96,000. The actual/budgeted figures for the six month to July 2015 were: Required: a. Prepare a monthly cash budget for the period May to July 2015. (15 marks) b. Assess the likelihood of AM being able to pay for the equipment when it falls due