Description Sales Purchases Wages Supplies Utilities Rent Insurance Advertising Depreciation Net Profit JANUARY 285,000 129,000 35,000 26,000 6,500 15,000 12,000 24,500 20,000 17.000 FEBRUARY 323,000 168,000 37,000 23,000 8,700 12,800 12.000 28,500 20,000 13.000 MARCH 221,000 95,000 30,000 21,500 7,200 13,600 12,000 18,000 20,000 3,700 Required: a. Please make a cashbudget forthemonths of January, February and March 1999 based on the data for: (5 Marks) Visw Receivable Trend: 30% of Sales are collected in the month of sale 30% of Sales are collected after the month of sale 40% of Sales are collected two months after the sale is made View Payable Trend: 10% of Purchases are paid for in the month of purchase 35% of Purchases are paid after the month of purchase 55% of Purchases are paid two months after the purchase is made Additional Information: Rent and Insurance expense were prepaid at the end of 1998 All other expenses are paid for in the month they were incurred November Sales = 195,000 November Purchases = 100,000 December Sales = 250,000 December Purchases = 165,000 Please see attached Budgeted Income Statement for 1st Quarter 1999 b. Being a CFO of the company, interpretthe importance budgetin strategic and operational planning of the company (Word limit Max 150-200) (2 marks)