Question 2 Jafatech Ltd is a small, fast-growing technology business. It is preparing its cash budget for the quarter from January 2023 to March 2023 , the following data has been obtained from the company's mansgement accounting system. In order to attract customers, Jafatech Ltd. has a history of offering generous credit terms. Customers tend to settle their debts according to the following partem 20% in the month of sale 40% in the month following the month of sale 40% in the second month following the month of sale Purchases of materials are 40% of each month's sales. They are paid for in the month following the purchase. Other data: Wages are 20,000 per month and overheads are 50,000 per month (overheads include depreciation of E15,000 per month). These costs are paid in the month in which they are incurred. A major asset, costing E100,000, is due to be purchased in February 2023. In order to part-fund this asset purchase, a E60,000 loan (interest rate 1.25% per month) is to be taken out at the beginning of February. The opening cash balance on 01 January 2023 was 47,000 . Required: (a) Prepare a detaled cash budget for each of the months from January 2023 to March 2023. [25 Marks] (b) Comment on the cash position of Jafatech Lwd for the first quarter of 2023 and briefly indicate the importance of preparing cash budgets. [5 Marks] [Total: 30 Marks]