2% Question 4. The Hazard Company, a merchandising firm, has planned the following sales for the next four months: March April May June Total budgeted sales $50,000 $70,000 $90,000 $60,000 Sales are made 40% for cash and 60% 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 70% First month following month of sale 20% Second month following month of sale 8% Uncollectible The company requires a minimum cash balance of $4,000 to start a month. Required: [Marks: 4+8=12] i. Prepare a cash collection schedule for the month of June. ii. Assume the following budgeted data for June: Purchases $52,000 Selling and administrative expenses $10,000 Depreciation $8,000 Equipment purchases $15,000 Cash balance, beginning of June $6,000 Using this data, along with your answer to part (1) above, prepare a complete cash budget in good form for June. Clearly show any borrowing needed during the month. The company can borrow in any dollar amount, but will not pay any interest until the following month