(CASH BUDGET) Tina owns and operates Sedap Bakery which sells a wide variety of

(CASH BUDGET) Tina owns and operates Sedap Bakery which sells a wide variety of cupcakes. She has compiled the following data and information in order to prepare a cash budget for September and October.i. Budgeted sales for September are 65000 cupcakes and 98000 cupcakes in October. Each cupcake sells for RM3.50.ii. On average 60 percent are cash sales and 40 percent are on account.iii. The company expects to collect 75 percent of credit sales in the month of the sale and 20 percent in the month after the sale.iv. All necessary raw materials are purchased on account. Purchases are paid 85 percent in the month of the purchase and 15 percent in the following month. Purchases for September are estimated to be RM200000 and RM290000 in October.v. Monthly expenses include:vi. Cash balance on September 1st was RM6000.vii. The company has a policy to maintain a minimum cash balance of RM5000. If necessary the company will borrow to meet its short-term needs. All borrowings are done at the beginning of the month and all payments on principal and interest are made at the end of the next month. The annual interest rate is 7%. The company must borrow in multiples of RM1000.viii. August sales were 43000 cupcakes and raw materials purchased were RM230000.Required:a) Prepare a cash budget for September and October.b) Why is cash information needed by companies?c) Explain how budget can sometimes be ineffective in changing behaviour.