1) What are the key components of a cash budget? (5)

2) What are the major forms of short-term borrowing? (5)

3) Calculating Cash Collections

The following is the sales budget for XYZ, Inc., for the first quarter of 2019:

	January	February	March
Sales budget	$325,000	$373,800	$384,600

Credit sales are collected as follows:

65 percent in the month of the sale

20 percent in the month after the sale

15 percent in the second month after the sale

The accounts receivable at the end of the previous quarter was $149,680 ($94,340 of which were uncollected December sales).

a) Compute the sales for November (4)

b) Compute the sales for December (4)

c) Compute the cash collections from sales for each month from January through March. (10)