Question 2 [25 marks] Diamond (Pty) Ltd has a sales budget for March of R440,000. About 10% are cash sales and the remainder is sold on account. The company expects that 60% of credit sales will be collected in the month of the sale, 25% in the next month and 10% in the following month. Materials purchased on account are expected to be R250,000. Allan pays 35% in the month of the purchase, 50% in the month following the purchase and the remaining 15% in the second month after the purchase. Salaries and wages of the workers are approximately R45,000 per month. The employees are paid weekly so on average 95% of their wages are paid in the month to which they relate and the remaining 5% is paid in the following month. Utilities average R4,300 per month. Rent on the building is R9,000 per month. Insurance is R3,000 per month and advertising costs are R1,000 per month. February sales were R320,000 and purchases of materials in February were R170 000 January sales were R200,000 and purchases of materials in January were R130,000. The cash balance on March 1st is R5,400. Required: A. Prepare a schedule of cash receipts Prepare a schedule of cash payments (Accounts payable payments) Prepare a cash budget