QUESTION ONE (20 Marks) REQUIRED Use the information provided below to prepare the Cash Budget for August, September and October 2022. (Provide separate monetary columns for each month.) INFORMATION The following budgeted information relates to Project Reggie which commenced a year ago. 1. Additional machinery and equipment will be purchased on credit on 31 August 2022 for R250 000. A deposit of 40% will be paid on 31 August 2022 and the balance will be paid in five equal monthly instalments commencing September 2022. 2. As additional factory space is required the existing rental of R84 000 per year, payable monthly, will be increased by 25% with effect from 01 September 2022. 3. Estimated sales at R30 per unit for July to October 2022 are as follows: Units July 2 900 August 3 200 September 3 000 October 3 400 4. Cash sales are expected to comprise 30% of the total sales. The balance of the sales will be on credit and these customers are expected to pay one month after the sale. 5. Variable production costs per unit are budgeted as follows: Direct materials R5 Direct labour R4 Variable overheads R2 Expected production figures for June to October 2022 are as follows: Units June 3 100 July 3 400 August 3 200 September 3 600 October 4 000 6. Direct materials will be purchased on credit and paid for two months after the month of purchase. 7. Direct labour costs will be paid monthly. 8. Variable production overheads will be paid in the month after they are incurred. 9. Fixed overheads amount to R9 000 per month, payable monthly. 10. The balance in the bank account on 31 July 2022 is expected to be R150 000.