QUESTION 3: 25 marks SHOW ALL SUPPORTING CALCULATIONS FOR THIS PROBLEM. NO MARKS WILL BE AWARDED FOR ANSWERS TO THE PROBLEMS UNSUPPORTED BY CLEARLY SHOWN CALCULATIONS. ROUND ALL CALCULATIONS UP TO TWO DECIMAL PLACES. OJ Small Company needs a cash budget for the month of April, 2016. The company's controller has provided you with the following information and assumptions: 1. The April 1, 2016 cash balance is expected to be $14,000. 2. All sales are on account. Credit sales are collected over a three-month period-50 percent in the month of sale, 40 percent in the month following sale, and 10 percent in the second month following sale. Actual sales for February and March were $110,000 and $90,000, respectively. April's sales are budgeted at $62,000. 3. Marketable securities are expected to be sold for $16,000 during the month of April. 4. The controller estimates that direct materials totalling $72,000 will be purchased during April. 60 percent of a month's raw materials purchases are paid in the month of purchase with the remaining 40 percent paid in the following month. Accounts payable for March purchases total $12,000, which will be paid in April. 5. During April, direct labour costs are estimated to be $21,000. 6. Manufacturing overhead is estimated to be 30 percent of direct labour costs, Further, the controller estimates that approximately 10 percent of the manufacturing overhead is depreciation on the factory building and equipment. 7. Selling and administrative expenses are budgeted at $23,000 for April. Of this amount, $4,000 is for depreciation. 8. During April, OJ Small Company plans to buy a new delivery van costing $29,000. The company will pay cash for the van. 9. OJ Small Company owes $27,000 in income tax, which must be paid in April. 10. OJ Small Company must maintain a minimum cash balance of $20,000. To bolster the cash position as needed, an open line of credit is available from the bank. Required: Prepare the following: a) A schedule of cash collections for April. 6 marks b) A schedule of cash payments for raw materials for April. 4 marks c) A cash budget for the month of April. Indicate in the financing section any borrowing that will be necessary during the month. 15 marks