Which of the following statements are true with regard to a cash budget? Check all that apply. Annual budgeting Information usually provides sufficient information to manage most companies. Cash budgets can be used to plan, coordinate, and control a firm's activities A cash budget provides information about a company's ability to repay its loans or meet its other obligations. The three sections of a cash budget, in order, are the cash collections schedule, the disbursements schedule, and the cash balance reconciliation Assume that Lincoln Co. has the following accounts receivable pattern: Month of sale Month following the sale 20% 80% All sales are on credit. If sales in April and May are budgeted to be $300,000 and $400,000, respectively, the cash expected to be collected in May is s Lincoln Co. purchases raw materials on account. Some of Lincoln's suppliers do not offer discounts and require payment the month following the purchase. Other suppliers sell on credit terms of 2/10 net 30, which means that Lincoln can take a 2% discount and pay 98% of the invoiced amount if the invoice is paid within 10 days. If the invoice is not paid within 30 days of making the purchase, then Lincoln must pay the full amount (100%) of the invoice. Lincoln's policy is to take advantage of available cash discounts by paying on day 10 and to make payments to suppliers who do not offer discounts on day 30. At the beginning of the year, Lincoln's account payable balance is $70,000. All available discounts have been taken, and the balance will be paid in January, Given the following planned purchases for the next few months, determine the amount of cash that must be available each month to pay for the firm's purchases: January Planned Purchases Discounted at 2/10 Net 30 55,000 40,000 40,000 Planned Purchases without Discounts Monthly Cash Requirement 30,000 60,000 February March 60,000