Markus Corporation's sales of gizmos are 10% for cash and 90% on credit. Past collection history indicates that credit sales are collected as follows: 25% in the month of sale 70% in the month following sale 5% in the second month following sale In January, sales were $39,000 and in February, sales were $43,000. Projected sales for March are 4,000 gizmos at $9 each. Projected sales for April are 4,700 gizmos at $11 each. The cash balance at March 1 was $7,350. Markus expects to purchase $22,000 of materials in February and $19,000 of materials in March. Three-quarters of all purchases are paid for in the month of purchase, and the other one-fourth is paid for in the month following the month of purchase. In addition, a 3% discount is allowed for payments made in the month of purchase. All other fixed expenses are $6,570 per month and are paid in the month of purchase. Instructions a) Prepare a cash budget for March. b) Why is the cash budget important