3. A merchandising firm by the name of Star Wars Enterprises, had an inventory of 47,000 units on March 31, and it had gross accounts receivable totaling $87,000. Sales, in units, have been budgeted as follows for the next four months: April 54,000 May 65,000 June 89,000 July 85,000 To be enforced in April, Star Wars board of directors has established a policy that states that the inventory at the end of each month should contain 40% of the units required for the following month's budgeted sales. The purchase price is $1.78, and the company receives 5% discount for any quantity =<50,000 and 12% for the incremental quantity over 50,000. $3.45 is the selling price per unit. One-Quarter of sales are paid for by customers in the month of the sale; the balance is collected in the following month. The company gives 5% discount for payment in the same month and 4% the following month when it is paid Required:

1. Prepare a schedule of expected cash collections for each of the months April, May, and June. (8 marks) ) (part 2 & 3 may be combined)

2. Compute the discount the company gave to its customers for each of the month April, May and June? (4 marks) (part 2 & 3 may be combined)