Mary, Heidi, Steve and, Roger planned to open up a cosmetic distributor outlet in Paris next year. They are in the process of assembling a cash budget for the first quarter of the year 2020. They asked you to help them to prepare a cash budget and provide you with the following information:

They will start the business in January 2020, with $90,000 cash as the capital.

They will rent a double-story building. They need to pay a rental deposit of $50,000 in January. However, they will only start paying the rental in February at $3,000 per month.

In February, they expected to purchase 5 display cabinets at the cost of $10,000 on credit. Only half of the cost will be paid in the month of purchase while the balance will be paid in the following month.

They will employ 3 staff in January, and each of them will be paid $1,600 per month.

Purchases of cosmetics will be made on credit and payment will be made in the following month after purchase. Estimated purchase are as follows:

January	$10,000
February	$15,000
March	$20,000

All sales will be made on a cash basis. Estimated cosmetics sales are:

January	$30,000
February	$35,000
March	$40,000

The allowance for Mary, Heidi, Steve, and Roger will start in March. Every partner will be paid $4,500.

The advertisement expense will be paid by cheque for $10,000 in February.

Required: a. Prepare a schedule that discloses the businesss total cash collections for January, February, and March 2020.

b. Prepare a schedule that discloses the businesss total cash payments for January, February, and March 2020.

c. Prepare the cash budget for January, February, and March 2020.

d. State FOUR (4) purposes of budget.