2 (28 marks: 50 minutes) EFG is preparing a budget for the first quarter of 20X3. The next step in the budget process is to prepare a cash collection plan and a cash payment plan. For this purpose, the following information is collected. Customers typically pay 60% the month the service is provided, 30% the following month, and 10% the following month after receiving the service. Actual service revenue for 20X2 and expected service revenue for 20X3 are: Nov 20X2, $120,000; Dec 20X2, $110,000; Jan 20X3, $140,000; Feb 20X3, $160,000; Mar 20X3, $190,000. Purchases of landscape supplies (direct materials) pay 40% one month of purchase and 60% the following month. Actual purchases in 20X2 and expected purchases in 20X3 are: December 20X2, $21,000; January 20X3, $20,000; February 20X3, $22,000; March 20X3, $25,000. Required: a) Prepare the following schedules for each month in the first quarter of 20X3 and for the quarter in total: i. Expected collections from clients. ii. Expected payments for landscaping supplies. b) Determine the following balances at March 31, 2013: (12 marks) i. Accounts receivable. ii. Accounts payable. (6 marks) c) Which budget is the first one that must be completed in the master budgeting process and why? d) Does a not-for-profit agency need to budget? Why or why not? (6 marks)