Question 5. Randall Company - Edmonton (Canada) (max. score 10) Randall Company is a merchandising company that sells a single product. The company's Inventories, production, and sales in units for the next three months have been forecasted as follows: October November December Beginning inventory .. 10.000 10.000 10.000 Merchandise purchases ..).... 60.000 70.000 35.000 Sales ......... 60.000 70.000 40.000 Ending inventory .... 10.000 10.000 5.000 Units are sold for CAN_$12 each. One fourth of all sales are paid for in the month of sale and the balance is paid in the following month. Accounts receivable at September 30 totaled CAN $450.000. Merchandise is purchased for CAN $7 per unit. Half of the purchases are paid for in the 50 % now month of the purchase and the remainder is paid in the month following purchase. Selling and administrative expenses are expected to total CAN $120.000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled CAN $290.000. Cash at September 30 totaled CAN $80.000. A payment of CAN $300.000 for purchase of equipment is scheduled for November, and a dividend of CAN $200.000 is to be paid in December. 5. (max. score 10) Prepare a schedule of expected cash collections and disbursements for merchandise purchases and for selling and general administrative (S&GA) for each of the months of October, November, and December. Discuss your findings