Due: May 27, 2019 ACCT 225-Managerial Accounting Assignment 1 Chapter 7 Question 1 (14 marks) The Doley Company has planned the following sales for the nex t three months January FebruaryMarc 41,413 $48,925 Budgeted sales $72,180 Based on past experience, 20% of total monthly sales are cash sales, with the remaining 80% made on account. From experience, the company has learned that monthly sales on account are collected according to the following pattern, with any remaining amounts deemed to be uncollectible Month of sale 56% First month following sale Second month following sale 29% 8% The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000 Required: a. Compute the budgeted cash receipts for March (6 marks). b. The following additional information has been provided for March (8 marks) $25,473 February inventory purchases (actual) urchases (projected) 527.222 38,513 $5,000 March invento ry p Operating expenses (all paid in March Depreciation expense for March Owner withdrawals (dividends) paid in March $4,000 About half of the inventory purchases in a given month will be paid for in that month. The other half will be paid for in the next month. Required: Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed in part (a) above. The company can borrow in any dollar amount and will not pay interest until April