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SECTION B-Answer Question 1 and any other two (2) Queilinns from this Section-60mks QUESTION 1 (COMPULSORY) You are presented with the following budgetrd inta for yotin arganiestion for the pcriod November 2021 to June 2022. It has been extracted from functional budisets that have already been prepared. You are also provided with the following additional intormation: - Sales are 40% cash, 60% credit. Credit sales ane paill two manths after the month of sales. - Purchases are paid the month following purchase - Overheads are paid the month after they ase incuine-i?. - Dividends are paid three months after they are declared. - Capital expenditure is paid two months after it is incurred. - The opening cash balance on 1 " January 2022 is CH1415,000 The Managing Director is pleased with the above figures as they show sales will have increased by more than 100% in the period under review. In order to achieve this, he has arranged a bank overdraft with a ceiling of GHc50,000 to accommodate the increased inventory levels and wage bill for overtime worked. Required: i. Prepare a cash budget for the six month period from January to June 2022 ii. Comment on your draft cash budget in the light of the managing director's comments and offer advice. (20mks) QUESIION 2 a) Explain how budgeting affects i. business strategy ii. business operations ( 6mks) b) Which budgeting approach yields a more comprehensive outcome top-down or bottom-up approwch? Explain. (3mks)

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