Question 4 (a) Don Company, a merchandising company specialising in office tables, is preparing detailed budgets for the next few months. Month Budgeted Sales (Units) October 1,200 November 800 December 1,000 January 700 The company buys the table for $80 each and sells them for $120 each. In September, the company sold 750 tables. Its inventory policy requires ending inventory in each month to equal to 25% of next months budgeted sales. On 30 September, 800 tables are on hand. All sales are on account. The companys experience with cash collection is that 45% of each months sales is collected in the month of the sale. The remaining 55% of sales is collected in full in the month following the sale. Prepare the following budgets, showing details for each of the months from October to December: (i) Sales budget. (4 marks) (ii) Merchandise purchases budget. (9 marks) (iii) Cash receipts budget. (6 marks) (b) Discuss three (3) benefits to be gained from budgeting.