Jumble Company wants to prepare budgets for 2021. You have been asked to help prepare a cash budget. You gathered the following information. Quarter 3 Quarter 4 (2020) $300,000 (2020) $320,000 Quarter 1 Quarter 2 (2021) $340,000 $400,000 (2021) Total Sales (80% credit; 20% cash) Direct materials purchases 90,000 80,000 110,000 120,000 Direct labour 105,000 112,000 Manufacturing overhead Selling and administrative expenses 60,000 75,000 55,000 80,000 Jumble makes both credit and cash sales. It expects collections to be 60% in the quarter of the credit sale, 40% in the quarter following the credit sale. It pays 30% of the direct materials purchases in cash in the quarter of purchase and the balance in the quarter following the purchase. All other expenses are paid in the quarter incurred. The company bought a piece of machinery for $10,000 at the end of Quarter 4 2020. The estimated useful life of this equipment is 5 years; it has no estimated scrap value. The straight- line depreciation of the machinery is included in the manufacturing overhead each quarter. There is no other depreciation. Jumble plans to declare total diyidends of $25,600 for 2021, to be paid evenly each quarter. Sale of investments in quarter 1 2021 is $5,000, and S7,000 in quarter 2 2021. The company expects its cash balance on January 1, 2021, to be $50,000. It wants to maintain a minimum cash balance of $60,000 in each quarter in 2021 and will borrow to meet the balance. Any amount above the minimum balance will be used to service and pay down the outstanding loan of $200,000. Required (Show clearly all workings) (a) Prepare schedules for quarter 1 and quarter 2 of 2021 showing the following @ (4 marks) the expected collections from customers and (i(3 marks) the expected payments for direct materials purchases. (b) (6 marks) Prepare the cash budget for quarter 1 of 2021, clearly showing the total receipts and total disbursements. (c) (2 marks) State or calculate the amount of two items that will be reported in the income statement and two items that will be reported in the balance sheet for quarter 1 of 2021. (total 4 items) (d) (2 marks) You overheard a manager saying, "Give me a target ending cash balance and I can create a cash budget with the balance that you want." Using the information given in the question, give two examples of how the manager can do this.