Gulf Company, a successful retailer located in Qatar, is preparing its budget for the upcoming quarter. The following data and information are available for the months of April, May, and June 20xx (current year) a. Budgeted sales and expenses for the period: April May June Sales... $400.000 $600,000 $500,000 Merchandise Purchases. 240,000 360,000 300.000 Administrative Expenses. 18,000 18.000 16.000 Insurance Payments. 30.000 30.000 30,000 Advertising..... 140.000 153,000 100,000 Machinery Purchases.. 16.000 Depreciation Expense... 20.000 20,000 20,000 b. All sales are on account. 20% of a month's sales are collected in the month of the sale, 75% is collected in the month following the sale, and 5% is collected in the second month following the sale. c. Accounts receivable on April 1 will be $303,000. of which $282,000 will be collected during April and $21,000 will be collected during May d. Merchandise purchases are paid in full in the month following the purchase. The March 31 accounts payable balance of $216,000 for merchandise purchases will be paid in April e. The cash balance on April 1 is budgeted to be $52.000 f. The company requires a minimum cash balance of $50.000 at the end of each month. The company may borrow any amount from a local bank at the beginning of a month and will make repayments at the end of a month. The yearly interest rate is 5% and interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: 1. Prepare a Schedule of Expected Cash Collections for April, May, June, and for the quarter in total. (3 marks) 2. Prepare a Cash Budget for April, May, June, and for the quarter in total. (7 marks)