700 800 900 The estimated sales in cakes for Nafaa Bakery for the period January to May are as follows: January 600 February 500 March April May The selling price of each cake is AED88. All sales are on credit with 50% of sales to be collected in the month of sale, 42% in the month following the sale and the remaining 8% to be considered as uncollectible. Sales for December were AED50,000. The company maintains finished goods inventories equal to 45% of the following month's sales. Each cake requires 8 pounds of ingredients. The company requires that the ending inventory of ingredients be equal to 40% of the following month's production needs. The ingredients cost AED7.50 per pound. The company pay 70% of a month's purchases of ingredients in the month of purchase and the remainder is paid in the following month. The accounts payable on December 31 AED19,000. 1. Prepare a sales budget, by month and in total, for the first quarter. Show your budget in both units and AED. (5 marks) 2. Prepare a schedule of expected cash collections, by month and in total, for the first quarter. (12 marks) were