Question 7a (20 marks, suggested time 20 minutes) Cash Collection Budget Royland Enterprises has established a collection profile as follows: 75% of very months sales are on credit. For credit sales: 40% are collected in the month of sales, 36% are collected in the month following the sale, 24% are collected in the second month following the sale. Sales for March are expected to be $330,000. The accounts receivable balance at February 28 is $190,350. Of that amount, $141,750 represents the balance due on February credit sales. There are no receivables from months prior to January Required: a. What were January's total sales? (5 marks) b. Calculate February's cash sales. (4 marks) C. Estimate March's total cash collections. (5 marks) d. Budgets are an important part of performance evaluation system of an organization. Identify and discuss two ways whereby budgeting improves the performance evaluation/ appraisal process. (6 marks; 3 marks each)