Player Ltd specializes in the importation and sale of equipment for children's indoor play centers. The company was set up two years ago by its joint shareholders, Mr and Mrs Smith. The business has been very successful, expanding rapidly over the last year, and the cash balance in the company's current account has exceeded £1 million on several occasions recently. Mr and Mrs Smith,have asked you, an accounting technician for Player Ltd, to assist them in managing their cash balances over the next six months. You have been provided with the following information. (1) The bank balance on 1 July 2019 is forecast at £1-2 million in credit. (ii) Sales for May and June 2019 are £1-3 million per month. They are expected to rise to £1.5 million in July 2019, £1-7 million in August and £1.9 million inSeptember. They will then fall to £1-4 million for each of the following six months. This is due to a downturn in demand as the weather improves. (III) All sales are made on credit. 2% of debtors do not pay at all, 70% pay one monthafter sale and the remaining 28% pay two months after sale. (iv) Purchases are made one month prior to sales, and two months' credit is taken from suppliers. (V) The company's gross profit margin is 50%. (vi) The cost of employing Player Ltd's permanent staff is £150,000 per month. PlayerLtd also employs temporary staff during July, August and September at anadditional cost equating to 3% of sales for each month. (vii) Player Ltd uses a courier to dispatch the equipment to its customers. The cost of this service is 2% of sales value in July to September, falling to 1% thereafter. (viii) Administration costs are forecast at £30,000 for July. These costs are directly proportional to sales each month. (ix) Mr and Mrs Smith, will be attending a conference abroad in July 2019 at atotal cost of £5,000. They must complete the booking form and send it off, along with a deposit of £2,000, by the end of July 2019. The final balance is due in December. (X) The company charges depreciation of £45,000 each month. (xi) Player Ltd also owns two indoor play centres, that it rents out at the rate of £3,500each per month from July to October, falling to £3,000 per month thereafter. All rents are received one month in advance. (XII) The company will invest in a new computer system later in the year. This will be paid for by two equal installments of £200,000, one in December and one in March 2020. REQUIRED: (a) Prepare a monthly cash budget for EACH of the six months to 31 Dec 2019, showing.clearly any necessary workings. Note: All workings should be in £000. Unless told otherwise, assume that payments are made in the month in which the costs are incurred. (b) In a changing environment the incremental budgeting approach is often viewed tobe obsolete and instead firms should adopt the ZBB approach. Discuss?