Question 3 [28 marks] Kafu Solutions operates a store in Kimberly. Management expect the next three months from April - June 2020 to demand some unusual cash flows. A cash balance of R 133 455 is currently on hand. 1. Sales for March 2020: R1 674 000 2. Total sales forecasts are; R 837 000 April 2020 May 2020 June 2020 1 116 000 976 500 July 2020 1 116 000 3. 35% of all sales are on credit, while cash sales amount to 65% of total sales. 100% of credit sales are received within 30 days the following month. 4. Cost of goods sold average 70% of sales. Inventory purchased during each month averages the cost of sales for the following month. 40% of purchases are on cash, 60% is paid the following month. 5. Operating expenses are projected as follows: Salaries and wages at 15% of sales paid in the month of the sale. Other expenses at an average of 10% of sales paid in the month of the sale. Cash receipts expected from repayment of a loan from an employee of R 27 900 due in June 2020. Repayment of short-term loan of R 13 950 is due in June 2020. Repayments of long-term loans due at R 18 600 each in April and June 2020. Delivery vehicle was purchased for R 223 200 and four payments of R 55 800 each are due in May, June, July and August 2020. Depreciation on all equipment is written off at a rate of R 26 250 per month. Interest income from an investment of R 22 785 per month is expected. A bonus of R 180 000 is due to staff in April 2020. The company must pay tax to SARS in June 2020, R 65 100. 7 HMAC200-1-JanJun 2020-SA1- GC-V1-13012020 Required: Prepare the monthly cash budget of Kafu Solutions for the period April - June 2020