(8} Salesmen are paid commission based on the amounts collected from sales each month. The amount is 5\" of sales collection each month. Miscellaneous expenses amounting to $120,000 monthly was not included i the operating expenses budget. (9} Records from the company's books revealed that 60% of purchases are for cash; 20% is paid for one month later; and the balance one month later. The following table provides information on budgeted purchases for the periods indicated: Budgeted Purchases February 1,500,000 1,100,000 April 2,000,000 May 1,400,000 1,500,000 July 1,000,000 August 1,600,000 September 1,200,000 [10} Short term nancial support is made available from National Bank Ltd if the need arises. The interest rate on borrowings is 12% per annum on the principal amounts that are to be paid back. The company is allowed to borrow at the beginning of the month and to pay back at the end of the month in multiples of $20,000. No more cash is to be borrowed than is needed and repayments are to be done promptly as long as there is sufficient cash to do so. Required: (a) A cash collection surmnary from sales showing cash and credit collections separately for the second quarter of 2016. [5 marks) (b) Apayment summary for purchases showing cash purchases and credit purchases separater for the second quarter of 2016. {5 marks) {c} A cash budget for the second quarter of 2016. Clearly show amounts for cash sales, credit sales, cash purchases, credit purchases and totals. (30 marks)