Question 2 The following estimates are available for the coming period: Month Budgeted Sales (Units) January 880,000 February 900,000 March 750,000 Notes: i. Opening cash balance for the month of February is expected to be $400,000. ii. Ending inventory of finished goods equal to 15% of that month's sales. iii. Budgeted selling price $400 per unit iv. Purchase price $200 per unit (purchase volume greater than 850,000 units per month will receive a 20% discount). v. Collections from customers: 60% in the month of sale 40% one month after the sale vi, Monthly operating expenses are budgeted at: Distribution $2,000,000 per month Administration cost per month is $980,000. This includes depreciation of $180,000 per month. Salesmen commission 10% of Cash Sales. vii. All expenses and purchases are paid in the month incurred unless otherwise specified. For the month of February prepare: a. Purchases budget in units and dollars b. Sales collection schedule c. Cash Budget