Prepare cash budget A college student, Brad Worth, plans to sell atomic alarm clocks with CD players over the internet and by mail order to help pay his expenses during the summer semester. He buys the clocks for $32 and sells them for $50. If payment by check accompanies the mail orders (estimated to be 40 per cent of sales), he gives a 10 per cent discount. If customers include a credit card number for either internet or mail order sales (30 per cent of sales), customers receive a 5 per cent discount. The remaining collections are estimated to be: One Month Following 15% Two months following 6% Three months folowwing 4% Uncollectible 5% Sales forecasts are as follows: September 120 Units October 220 units November 320 units December 400 units January out of the business Brad plans to pay his supplier 50 per cent in the month of purchase and 50 per cent in the month following. A 6 per cent discount is granted on payments made in the month of purchase; however, he will not be able to take any discounts on September purchases because of cash flow constraints. All September purchases will be paid for in October. He has 50 clocks on hand (purchased in August and to be paid for in September) and plans to maintain enough end-of-month inventory to meet 70 per cent of the next month's sales. Required (a) Prepare schedules for monthly budgeted cash receipts and cash disbursements for this venture. During which months will Brad need to finance purchases? ( b ) Brad planned simply to write off the uncollectibles. However, his accounting professor suggested he turn them over to a collection agency. How much could Br