No.2 (15 Marks) The Medvedev Company, a merchandising firm, has planned the following sales for the next four months: Total budgeted Sales March $50,000 April $70,000 May $90,000 June $60,000 July $90,000 Sales are made 60% for cash and 40% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: . 70% . Month of sale First month following month of sale. Second month following month of sale Uncollectible 20% 8% 2% Medvedev has a building that is not used in the business operation; they rented it out and receive $10,040 rent every month. The company requires a minimum cash balance of $14,000 to start a month. . . Required (15 Marks) a) Compute the budgeted cash receipts for June. b) Assume the following budgeted data for June: Purchases Selling and administrative expenses Depreciation Equipment purchases Dividend payment Tax payment Cash balance, beginning of June . . $52,000 $10,000 $18,000 $18,000 $12,000 $4,000 $9,720 . . Using this data, along with your answer to part (1) above, prepare a cash budget in good form for June. The company can borrow in any dollar amount, but will not pay any interest until the following month