3. A firm has an average collection period of 30 days and an operating cycle of 120 days. It has a policy of keeping at least RO 10,500 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of RO 20,000. Beginning receivables for the quarter amount to RO 60,000. Sales for the first and second quarters are expected to be RO 210,000 and RO 220,000, respectively, while purchases amount to 60% of the next quarter's forecasted sales. The quarterly wages and other expenses is RO 2,000. The accounts payable period is 45 days. a What are cash collections in the first quarter? (2 pts) Q1 Beginning receivables Sales Cash collections Ending receivables b. What are cash disbursements for the first quarter? (2 pts) Q1 Payment of amounts Wages and other expenses Capital expenditures Total cash disbursements c What is the cumulative surplus (deficit) at the end of the first quarter? (2 pts) Q1 Cumulative surplus (deficit) 3. A firm has an average collection period of 30 days and an operating cycle of 120 days. It has a policy of keeping at least RO 10,500 on hand as a minimum cash balance, and has a beginning cash balance for the first quarter of RO 20,000. Beginning receivables for the quarter amount to RO 60,000. Sales for the first and second quarters are expected to be RO 210,000 and RO 220,000, respectively, while purchases amount to 60% of the next quarter's forecasted sales. The quarterly wages and other expenses is RO 2,000. The accounts payable period is 45 days. a What are cash collections in the first quarter? (2 pts) Q1 Beginning receivables Sales Cash collections Ending receivables b. What are cash disbursements for the first quarter? (2 pts) Q1 Payment of amounts Wages and other expenses Capital expenditures Total cash disbursements c What is the cumulative surplus (deficit) at the end of the first quarter? (2 pts) Q1 Cumulative surplus (deficit)