Question7 (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 $900,000. The marketing department has predicted unit sales to be as follows: January February March ,480,000 sq. yds. 2,120,000 sq. yds. ,300,000 sq. yds. 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 (b) Prepare a Schedule of Expected Cash Collections for the first three months. (11 totals for the quarter.) (6 marks) marks)