1) The Doley Company has planned the following sales for the next three months: January $40,000 February $50,000 Budgeted Sales Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of Sale First Month Following Sale Second Month Following Sale Uncollectible March $70,000 60% 30% 8% 2% The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Inventory Purchases (all paid in March) Operating Expenses (all paid in March) Depreciation Expense for March Dividends paid in March Required: a. Compute the budgeted cash receipts for March. b. The following additional information has been provided for March: $28,000 $40,000 $5,000 $4,000 Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part (1) above. The company can borrow in any dollar amount and will not pay interest until April.

1) The Doley Company has planned the following sales for the next three months: Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Required: a. Compute the budgeted cash receipts for March. b. The following additional information has been provided for March: Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part (1) above. The company can borrow in any dollar amount and will not pay nterest until April