Question 3 22 The Plantd' Company's budgeted sales for the first quarter of 2020 are as follows: (25 Marks) January February March Total N$ 400 000 320 000 480 000 1 200 000 Credit sales are normally collected as follows: In the month of sale The month following the sale The second month following the month of the sale Total Percent (%) 50 30 20 100 The firm's beginning balance of accounts receivable is N$150 000 and is composed of the following: From December 2019 sales N$ From November 2019 sales 100 000 Total 50 000 150 000 The company offers a 2% cash discount to its wholesale customers who pay their bills within the month of sale. MARKS REQUIRED: 3.1 What is a cash budget? 3.2 Compute the amount of sales for November and December Prepare a cash budget of cash collections for each month of the first quarter of 3.3 2020 and a total for the quarter. 3.4 Calculate the balance of accounts receivable at March 31, 2020. 3.5 Name four (4) benefits for the company of using a cash budget. 1 4 13 3 4