Question 3 (25 Marks) The Plantd' Company's budgeted sales for the first quarter of 2020 are as follows: January February March N$ 400 000 320 000 480 000 Total 1 200 000 Credit sales are normally collected as follows: Percent (%) 50 In the month of sale The month following the sale The second month following the month of the sale 30 20 100 Total 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 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. REQUIRED: MARKS 3.1 3.2 1 4 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. 13 3.4 3.5 3 4 Page 15 of 16