Question 7 (17 marks) Lirag is a textile manufacturing company in eastern Tennessee. Every year the company prepares a complete set of budgets. The budgeting process begins with information supplied by the Sales and Marketing department The balance in Accounts Receivable at the beginning of the year was department has predicted unit sales to be as follows: $900,000. The marketing 1,480,000 sq. yds 2,120,000 sq. yds. 1,300,000 sq. yds. January February March Selling price for the fabric is $2.00 per square yard. Cash sales account for 25 % of sales. Collections on account (non-cash sales charged to accounts receivable) are received 60% in the month of the sale and 40% in the following month. Required: (a) Prepare a Sales budget for Lirag for the first three months of the year. (Show totals for the quarter.) (6 marks) (b) Prepare a Schedule of Expected Cash Collections for the first three months. (11) marks) (12 markel