Fairways is a wholesale distributor of auto spare parts in UAE. Thus, peak sales occur in August due to Ramadan as shown in the company's sales budget for the third quarter, given below: Jul Aug Sept Budgeted Sales (All on account in AED) 600,000 750,000 500,000 From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. May sales totaled $450,000, and June sales totaled AED 550,000. Required: Prepare a schedule of expected cash collections from sales by month. (July, August, and September). Ajman Products, Inc., is a merchandising company that sells school supplies. The company is planning its cash needs for the third quarter. In the past, Ajman Products had to borrow money during the third quarter to support peak sales of back-to-school materials, which occurs during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. The Total cash collections and disbursement for purchases are as follows (All amounts are in dollars): Jul Aug Sept Total Cash collection 80,000 47,760 59,600 Total Cash disbursed for purchases 95,000 31,250 30,375 Selling and administrative expenses will be incurred as follows: Selling expenses 7,200 9,700 8,500 5,600 Administrative expenses 6,100 7,200 b. Land costing $4,500 will be purchased in July. c. Dividends of $5,000 will be declared and paid in September. d. The cash balance on July 1st is $9,500; the company must maintain a cash balance of at least $10,000 at the end of each month. e. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 12% per year. The company would repay the loan plus accumulated interest at the end of the quarter. Required: Prepare a cash budget for July, August and September. 1. A schedule of expected cash collections (15 marks) 2. A cash budget (20 marks)