Yaeger Ltd prepares monthly cash budgets. Relevant data from operating budgets for 2020 are: Janoary February Sales $360,000 $400,000 Direct material purchases $125,000 $130,000 Direct Labour $90,000 $100,000 Manufacturing overhead $70,000 $75,000 Selling and administrative expenses $79.000 $86,000 Additional Information All sales are on credit Collections are expected to be 50% in the month of sales, 30% in the first month following sale, and 20% in the second month following the sale. Sixty per cent of direct material purchases are paid in cash in the month of purchase, and the balance due is paid the month following the purchase. All other items above are paid in the month incurred. The selling and administrative expenses includes $1,000 of depreciation per month 21 or 24 Other data 1. Actual Credit sales: November 2019, 8260,000: December 2019, $300,000 2 Purchases of direct materials: December 2019, $100,000 3 Other receipts: January - Collection of 31 December 2019, notes receivable $15,000 February - Proceeds from sale of securities $6,000 4. Other disbursements: February-withdrawal of $5,000 cash for personal use of owner; Dewey Yaeger Yaeger Lid's cash balance on 01 January 2020, is $70,000. The entity wants to maintain a minimum cash balance of $50,000 Required: a) Discuss the four (4) benefits to an entity in preparing budgets for the coming financial year (4 marks) b) Prepare the schedule of receipts from account receivables for January and February 2020 (3 marks) c) Prepare the schedule of payments to suppliers of direct materials for January and February 2020 (2 marks) d) Prepare the cash budget for the month ended 31 January 2020 (6 marks)