Transcribed image text : Question 4 (17.5 marks) Blue Company's accountant Bella has prepared the below forecasted credit sales for the quarter July to September. 50% of credit sales will be collected in the month of sales, 40% of sales will be collected in the month following the sales, and 10% of sales are collected two months after the sales. July $80,000 August $85,000 September $90,000 Credit Sales Inventory purchases are all on credit and average 50% of forecasted credit sales of each month. 50% of inventory purchases are paid for in the month of the purchase, 30% in the following month and 20% two months after the purchase. Operating expenses are paid in the month incurred and include monthly rent $2,000, wages $10,000, and utilities $400. Required: 1. Prepare a schedule for cash collections (receipts) on accounts receivable for September. 2. What would the accounts receivable balance be on 30 September? 3. Prepare a schedule for cash disbursements (payments) on accounts payable for September. 4. Prepare a cash budget for September. Cash balance on 1st September is $60,000. 5. Blue Company is considering the purchase of a new equipment in October for a new product launch. The new equipment will cost $80,000 in cash. Blue Company was hoping to fund the purchase of the new equipment from the cash flows of the business. Does Blue Company have enough cash for the purchase? Explain and provide necessary calculations. (4+2+5+3.5+3 = 17.5 marks) Start typing your answer from here