American corporation, a wholesaler into auto spare parts, was preparing his sales budget for the third quarter of $2020.$ Forecast sales are as follow:

$$406,000|$ July

$454,000|$ August

$496,000|$ September

$$1,356,000|$ Total

Sales are $30\%$ cash and $70\%$ on credit. $60\%$ of the credit sales are collected in the month of sales, $40\%$ in the month following the sales. The $$280,000$ of June credit sales to be collected in the same way as the other credit sales will be collected.

Required:

$1-$ Discuss two advantages for budgeting.

$2-$ Discuss two problems in implementing budget.

$3-$ One of the acts that the person in charge of preparing the budget is applying the concept of budgetary slack. Explain what is budgetary slack and what is the goals of applying budgetary slack $?$

$4-$ Prepare the sales budget for the months July, August and September $2020.$

$5-$ Prepare the cash collection budget for the months July, August and September.