The PM Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account (A/R). From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale: 60% First month following sale: 30% Second month following 8% Month of sale: 60% First month following sale: 30% 8% Second month following sale: Uncollectible: 2% The following additional information has been provided for March: Inventory purchases (70% paid in March; 30% paid $28,000 in April): Operating expenses, excluding depreciation (all paid in March) $40,000 The following additional information has been provided for March: Inventory purchases (70% paid in March; 30% paid $28,000 in April): Operating expenses, excluding depreciation (all paid in March) $40,000 Depreciation expense for March $ 5,000 Dividends paid in March $ 3,000 Equipment purchases (50% paid in March, 50% paid in April) $21,000 The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. 10) The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Required: a) Compute the budgeted cash receipts for March. (4 marks) b) Prepare a cash budget for the month of March, including the budgeted cash receipts you computed for part a) above, cash outflows and financing requirements. The company can borrow in any dollar amount and will not pay interest until April. (8 marks) January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account (A/R). From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale: 60% First month following sale: 30% Second month following 8% sale: Uncollectible