Question 3: The following information is budgeted for Puppy Paradise for next quarter Sales Merchandise purchases Selling and administrative expenses Apr May June. $110 000 $130000 $85,000 $50,000 All sales at the company are made on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on property, plant and equipment. All other selling and administrative expenses are paid as incurred. Puppy Paradise wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed in increments (multiples) of $1,000. All borrowings are made at month end. $92.000 $105.060 $50.000 $180.00 $50,000 Required: a. Prepare Puppy Paradise's cash budget for May assuming the company expects to have $24,000 of cash on hand at the beginning of the month. (10 marks] b. Critically evaluate the advantages and disadvantages of self-imposed budgets (5 marks]