Question II (35 % ) Here are some important figures from the budget of Scarlet Inc., for the second quarter of 2019 April May June Credit sales 336,900 314,500 378,400 Credit purchases 134,100 152,400 180,300 Cash disbursements Wages, taxes, and expenses 48,910 62,300 67,600 Interest 11,320 11,320 11,320 Equipment purchases 79,900 122,000 0 Additional information: The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were 211,500 and credit purchases were 145,200 Cash balance at 1 April 2019 is 121,000. Instructions (1) Using all the above information, complete the following cash budget. (25% ) June y April Beginning cash balance Cash receipts: Cash collections from credit sales Total cash available Cash disbursements: Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance (2) Explain the role of cash budget. (10%)