Question 3 (25 Marks) The Plantd' Company's budgeted sales for the first quarter of 2020 are as follows: N$ 400 000 January February 320 000 March 480 000 Total 1 200 000 Credit sales are normally collected as follows: Percent (%) In the month of sale 50 30 The month following the sale The second month following the month of the sale 20 Total 100 The firm's beginning balance of accounts receivable is N$ 150 000 and is composed of the following: N$ 100 000 From December 2019 sales From November 2019 sales 50 000 Total 150 000 The company offers a 2% cash discount to its wholesale customers who pay their bills within the month of sale. MARKS REQUIRED: 1 3.1 4 3.2 13 3.3 What is a cash budget? Compute the amount of sales for November and December. Prepare a cash budget of cash collections for each month of the first quarter of 2020 and a total for the quarter. Calculate the balance of accounts receivable at March 31, 2020. Name four (4) benefits for the company of using a cash budget. 3.4 3.5 3 4 Page 15 of 16