Mountain Mash produces ice cream for wholesale distribution to grocers, restaurants, and independent ice cream shops. March, April, May, June, and July are busy months for the company as its customers gear up for the spring and summer rush. Mountain Mash has projected the following level of sales (in gallons) for March through July: March 12,900.00 gallons April 13,800.00 gallons May 14,680.00 gallons June 16,260.00 gallons July 16,140.00 gallons The company has a set wholesale selling price of $3.50 per gallon. Mountain Mash's customers purchase ice cream on credit, with the agreement that they must pay invoices within 30 days. Nonetheless, not all customers pay within that time frame. Mountain Mash's credit manager has developed the following table to show the typical cash collection pattern: 70% of sales are collected in the month of the sale 25% of sales are collected in the month following the sale 5% of sales are collected two months after the sale Required: Prepare a sales budget for March, April, May, June, and July. Prepare a cash receipts budget for May, June, and July. Be sure to remember the cash collections from months prior to May. Sales Budget March April May June July Sales (units) 12,900.00 13,800.00 14,680.00 16,260.00 16,140.00 Selling price $3.50 $3.50 $3.50 $3.50 $3.50 Sales (in $) $45,150.00 $48,300.00 $51,380.00 $56,910.00 $56,490.00 Cash Receipts Budget March April May June July Sales (in $) $45,150.00 $48,300.00 $51,380.00 $56,910.00 $56,490.00 Collected in current month _____% $31,605.00 $33,810.00 $35,966.00 $39,837.00 $39,543.00 Collected in following month _____% $0.00 $11,287.50 $12,075.00 $12,845.00 $14,227.50 Collected two months later _____% $0.00 $0.00 $2,257.50 $2,415.00 $2,569.00 Total Cash collections $76,755.00 $93,397.50 $101,678.50 $112,007.00 $112,829.50