Riley Inc has asked for your assistance in preparing a cash budget for the month of March 2021 and has provided projected sales revenue data below:

Riley Inc has asked for your assistance in preparing a cash budget for the month of March 2021 and has provided projected sales revenue data below: Projected sales: January 2021 February 2021 $144,000 $205,000 $220,000 March 2021 All sales are on credit with 65% collected during the month of sale, 18% collected during the month following the sale, 15% during the second month after the sale and 2% uncollectable. Required: a) Prepare the cash receipts section of a cash budget for Riley for the month of March 2021. b) Explain how Riley would go about constructing a cash budget for April to June of 2021. Note that Riley plans to purchase a major piece of equipment costing $500,000 in May 2021