PART II (35 possible marks) Woolsworth Corporation manufactures and sells woolen jackets. It is ready to begin its fourth quarter, in which they have their highest sales. The company has approached the Bank for a 90-day loan of $25,000. The Bank has asked the corporation to submit a cash budget for the 90 days period. The following data has provided to you: a. At the beginning of the fourth quarter the cash balance will be $12,500 b. Sales figures is given below Month Sales in Dollars August 2019 $40,000 September 2019 $42,000 $65,000 October 2019 November 2019 December 2019 $90,000 $92,000 Past experience shows that 25% of a month's sales are collected in the month of sale, 70% in the month following sale, and 5% in the second month following sale. c. Budgeted raw materials purchase and expenses is given below October November December Materials Purchase 47,000 48,000 52,000 Salary Expense 17,000 17,000 17,000 Utilities Expense 2,000 2,000 2,000 Depreciation 3,000 3,000 3,000 Expense Rent Expense 2,500 2,500 2,500 d. Rent is always paid in the following month. e. Rent due for the month of September to be paid in October is 2,200 $ f. The company paid a dividend of $2,000 in December g. They bought a computer for $1,800 and paid in cash in November h. In preparing the cash budget, assume that the $25,000 loan will be taken in the beginning of October and repaid in December with interest at the rate of 4% per year. Required: Prepare 1. Prepare a schedule of cash collections for the fourth quarter. 2. Prepare the Cash Budget to be submitted to the Bank for the fourth quarter