As part of the companys overall planning program, the Finance Manager of ABC Limited, prepares a cash budget by quarters each year. The companys operations consist solely of processing and canning the yearly crop of peaches. As this is a seasonal commodity, all manufacturing operations take place in the quarter of October through December. Sales are made throughout the year, and the companys fiscal year ends on 30 June. The sales forecast for the coming year is as follows: GH First quarter (July to September 2021) 780,000 Second quarter (October to December 2021) 1,500,000 Third quarter (January to March 2022) 780,000 Fourth quarter (April to June 2022) 780,000 All sales are on credit. The beginning balance of receivables is expected to be collected during the first quarter. It is anticipated that subsequent collections will follow the pattern of two thirds collected in the quarter of sales, the remaining one third in the quarter following. Purchases of peaches are scheduled as follows: GH240,000 in the first quarter and GH720,000 in the second quarter. Payment is made in the quarter of purchase. Direct labour of GH700,000 is incurred and paid in the second quarter. Factory overhead cost (paid in cash during quarter it is incurred) is GH860,000 in the second quarter. The standby (fixed) amount in each of the three quarters is GH200,000. Selling and administrative expenses incurred, incurred and paid, amount to GH100,000 per quarter during the year. To finance its seasonal working capital needs, the company has obtained a line of short-term credit with the Royal Bank Limited. The company maintains a minimum cash balance of GH8,000 and borrows and repays only in multiples of GH5,000. It repays as soon as it is able to do so without impairing the minimum cash balance. Interest is at 8 percent per annum and is paid at the time of loan repayment. It is assumed that all borrowing is done at the beginning of a quarter, and the repayments are made at the end of a quarter. (Round interest calculations to nearest GH1,000). The company plans to spend the following amounts on equipment: Third quarter GH150,000 Fourth quarter GH 50,000 Account balances as of 1 July 2021, were: Cash GH 8,000 Accounts receivables GH 25,000 Page 6 of 8 REQUIRED: A) Prepare a schedule of budgeted cash collections on sales. B) Prepare a cash budget by quarter and for the year in total ending 30 June 2022. C) Comment briefly on the nature, and purpose of cash budget for management.