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Problem 2 (60 pts.): The marketing department of Groovy Sue Backpacks has the following sales budget for the months of April through July: April May June July Budgeted Cash Sales $ 39,000 $ 32,000 $ 34,000 $ 39,000 Budgeted Credit Sales 351,000 288,000 306,000 351,000 Budgeted Total Sales $ 390,000 S 320,000 $ 340,000 $ 390,000 Management expects to collect 65% of credit sales in the month in which the credit sales are made and 35% in the following month. The balance of accounts receivable as of March 31st, all of which is expected to be collected in April, is $119,700. Budgeted cost of goods sold is estimated to be 60% of total sales. Groovy Sue management wants ending inventory to be equal to 20% of the following month's budgeted cost of good sold. On March 31st, ending inventory was $46,800. Required: 1. Using the template provided, calculate the expected cash collections for each month for April through June. (30 pts.) Groovy Sue Backpacks Schedule of Cash Collections April May June Collections from: Cash Sales Credit Sales: Accounts receivable, Mar 31* April credit sales May credit sales June credit sales Total collections 2. In the space provided below, prepare the merchandise inventory purchases budget for April through June. (30 pts.) Groovy Sue Backpacks Merchandise Purchases Budget April May June