Question 3 (9 marks) Part (a) _(4 marks) Peter's Creations produces homemade quality pies which currently sell for $8 a pie. The entity has developed its web page and is trying to expand customer reach to this form of medium. Sales in units for each quarter of 2020 were as follows: Units 15,000 Quarter Ending 31 March 30 June 30 September 31 December 30,000 40,000 10,000 Due to the change in sales strategy and other operating conditions, Peter expects the following changes to sales for 2021: Quarter Ending 31 March Expected Change Decrease by 6% Increase by 7% 30 June 30 September Increase by 4% 31 December Decrease by 10% Peter also believes that the selling price should increase to $10 for the last two quarters of 2021. Required Prepare a Sales Budget for 2021. Peter also believes that the selling price should increase to $10 for the last two quarters of 2021. Required Prepare a Sales Budget for 2021. Ensure you show all your workings. You may use either word or excel to answer this question but your final submission must be in this one document and not include screen shots or photos as these cannot be reviewed by Turnitin. Please note: you will only be penalised once for an error, please continue with the question even if you are not sure as you may receive marks. Part (b) _15 marks) Stephen's Exotic Snails has provided the following estimates relating to the first quarter of the financial year, the quarter beginning 1 July 2020 and ending 30 September 2020: $75,000 Cash Sales Credit Sales Receipts from Debtors Wages paid Rent paid $50,000 $60,000 $55,000 $20,000 Utilities paid Administration paid $9,000 $15,000 Depreciation of machinery Receipt of Loan $5,000 $35,000 Credit Purchases $65,000 $70,000 Payment to Creditors The cash balance at 1 July 2020 is expected to be $10,500. Required 0 Prepare a Cash Budget for the quarter ending 30 September 2020. (4 marks) Required (0) Prepare a Cash Budget for the quarter ending 30 September 2020. (4 marks) (ii) Based on your Cash Budget, comment on whether the business can afford to purchase a new delivery vehicle for $25,000 during this quarter. (1 mark)