Case Number 2: Conradt Connectivity Company manufactures various electrical connectors. The company's sales budget for the first six months of the coming year is as follows: All sales are made on credit. January February March April May June Budgeted sales $540,000 $475,000 $580,000 S625,000 $560,000 $600,000 Conradt is planning to change its credit policies in the coming year. For the first time in its history, the company is offering a 2% discount to customers who pay within 15 days of the invoice date. Based on industry trends, Conradt estimates that this change will result in 50% of credit sales being paid within the discount period; another 15% of sales, within the month of sale (but outside of the discount period); and another 32% of sales, during the month after the sale. An estimated 3% of sales will be uncollectible. Required: 1. Prepare Conradt's cash receipts budget for the second quarter of the coming year. (3) 2. How much the cash will Conradt sacrifice in the second quarter offering the new discount? (3) 3. What do you think led Conradt to offer the new discount to customers? (3) by