- 70% of the firm's sales are on credit. - Past experience shows that 40% of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. - BusFin pays its purchases in the following month. - BusFin had a cash balance of $2,000 on March 1 , which is also its minimum required cash balance. - There is an outstanding loan of $2,000 on March 1. a) Prepare a schedule of cash receipts for March, April and May. (6pts) b) Prepare a schedule of cash payments for March, April and May. (3pts) c) Prepare a cash budget for March, April and May. (6pts) d) Based on the cash budget what loan limit would you recommend? Explain how you came to this amount. (3pts) e) What is the value of BusFin's accounts receivable and accounts payable at the end of May (2pts) 2. - 70% of the firm's sales are on credit. - Past experience shows that 40% of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. - BusFin pays its purchases in the following month. - BusFin had a cash balance of $2,000 on March 1 , which is also its minimum required cash balance. - There is an outstanding loan of $2,000 on March 1. a) Prepare a schedule of cash receipts for March, April and May. (6pts) b) Prepare a schedule of cash payments for March, April and May. (3pts) c) Prepare a cash budget for March, April and May. (6pts) d) Based on the cash budget what loan limit would you recommend? Explain how you came to this amount. (3pts) e) What is the value of BusFin's accounts receivable and accounts payable at the end of May (2pts) 2