concern and have been given the quarter ending March 31, 2024. Your data collection has yielded the toll owing: ti) Extracts from the sales and purchases budgets are as follows: Cash Sales Purchases Sales On November 2023 Account November $151,100 $480,000 $375,000 December $145,500 I $600,000 $350,000 Janua_ry $159,025 $700,000 $503,000 1 LE\" bruary $169350 $050000 $400000 March $175,200 $800,000 $521 ,000 iii} (iii) (VI) {vii} {trill} An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 2/30, .090: 45% in the month of sale 30% in the rst month following the sale. 25% in the second month following the sale. Expected purchases include cash purchases of $20,000 in January and $21, 000 in March. All other purchases are on account. Accounts payable are settled as follows in accordance with the credit terms 4/30. n50: T5% in the month in which the inventory is purchased. 25% in the following month The management of Toyota & Sons is in the process of upgrading its fleet of motor vehicles. During March the company expects to sell an old Crcsida motor vehicle that cost $500,000 at a gain of $45,000. Accumulated depreciation on this motor vehicle at that time is expected to be $340,000. The employee will be allowed to pay a deposit equal to 00% of the selling price in March; the balance will be settled in two equal amounts in April 8. May of 2024. management has decided to liquidate the investment upon maturity. (in that date interest computed at a rate of 523%; per annym is also expected to be collected. Fixed operating expenses which accrue evenly throughout the year, are estimated to be $2,010,000 per annum, ncluding depreciation on non-current assets of $42,000 per month] and are settled monthly, goat-tori}: Other operating expenses are expected to be $1??,000 per quarter and are settled monthly. Continued....... ............................ (ix) {X} (It) (xii) The management of Toyota & Sons has negotiated with a tenant to rent ofce space to her beginning February 1. The rental is $540000 per annum. The rst month's rent along with one month's safety deposit is expected to be collected on February 1, Thereafter monthly rental income becomes due at the beginning of each month. Wages and salaries are expected to be $2,9?6.000 per annum and will be paid monthly. payable in January 2024. The cash balance on March 31. 2024, is expected to be an overdraft of $98,000. Required: (a) {hi (6) The business needs to have a sense of its future cashows and therefore requires the preparation of the following: A schedule of budgeted cash collections for trade receivables for each of the months January to March. (5 marks} January to March. A cash budget, with a totai coiumn, for the quarter ending March 31. 2024. showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no nancing activities took place. (25% marks} Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter and has asked you to furnish him with the gures for the expected trade receivables and payabies to be included in the statement. Is that a reasonable request? lf yes, what should these amounts be? {2 marks) organization's monthly cash ow and militate against or reduce any possible shot-trail reflected in the budget prepared. Each strategy must be fuliy expiar'neo'. (3% marks} '1\" Anilinn s- -..__.. _