The following information is budgeted for Plumbing Limited for next quarter:

	April ($)	May ($)	June ($)
Sales	110,000	130,000	180,000
Merchandise purchases	85,000	92,000	105,000
Selling and administrative expenses	50,000	50,000	50,000

All sales at the company are on credit: 40% are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include $8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. The company wants to maintain a cash balance of $15,000. Any amount below this can be borrowed from a local bank as needed. All borrowings are made at month-end. The interest rate is 2% per month, which is paid in the following month. Required: i. Prepare a cash budget for May. The company expects to have $24,000 of cash on hand at the beginning of May.

ii. Davey Pichai, a first-year undergraduate student, has recently joined as a summer intern in the accounting department at Plumbing Limited. While having lunch in the companys cafeteria, Zarik Adler Daveys mentor at Plumbing Limited observed that Davey mainly views budgets as a planning and controlling tool. Zarik was thinking to broaden Daveys understanding of budgeting by providing a few examples of how budgets can also facilitate decision-making tasks in a company. Imagine yourself as Zarik and discuss three decision-making tasks that the above cash budget (refer to the Part-A above) could facilitate in the company.[Maximum word limit: 250 words].