Use the following information which relates to ABC Limited to answer the questions which follow: Information: 1. Cash at bank on 1 January 2022 amounted to R100 000. 2. Projected sales for the first four months of 2022: January R200 000 February R400 000 March R700 000 April R800 000 Fifty per cent (50%) of the sales are for cash and fifty per cent (50%) are on credit. Cash customers are entitled to a 5% cash discount. 3. Collection of credit sales: 90% of the credit sales are collected in the following month of the sale and the balance is written off as a bad debt. 4. Purchases for the first four months of 2022 are expected to be as follows: January R200 000 February R100 000 March R150 000 April R180 000 All purchases are on credit. 50% of the purchases will be paid for in the month of purchase and the remaining 50% in the following month. 5. Fixed overheads total R300 000 per year and are paid for equally each month. 6. Administrative expenses are paid for in the month in which they are incurred and are estimated at a total of R10 000 per month 7. An investment of R300 000 matures on 28 February 2022, and interest of R10 000 will also be received on this date. Required: Prepare the Cash Budget for the first four months of 2022.

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