Question 4 (25 Marks, 45 Minutes) The Plantd Companys budgeted sales for the first quarter of 2020 are as follows: N$

January	400,000
February	320,000
March	480,000
Total	1,200,000

Credit sales are normally collected as follows: Percent (%)

In the month of sale 50 The month following the sale 30 The second month following the month of the sale 20 Total 100

The firms beginning balance of accounts receivable is N$150,000 and is composed of the following: N$

From December 2019 sales	100,000
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

REQUIRED:	MARKS
4.1	What is a cash budget?	1
4.2	Compute the amount of sales for November and December.	4
4.3	Prepare a cash budget of cash collections for each month of the first quarter of 2020 and a total for the quarter.	13
4.4	Calculate the balance of accounts receivable at March 31, 2020.	3
4.5	Name four (4) benefits for the company of using a cash budget.	4
TOTAL MARKS	25