please assist with (b) and (c) Snip & SketchO NewCashSalesSalesOn AccountMonthPurchasesAugustSeptemberOctober$85,000$70,000$88,550$77,160$174,870$640,000$550.000$600,000$420,000$550,000$500.000$600,000$450.000NovemberDecember$800,000$500,000i)An analysis of the records shows that trade receivables are settled according to thefollowing credit pattern, in accordance with the credit terms 4/30, n90:50% in the month of sale30% in the first month following the sale20% in the second month following the saleii)Expected purchases include monthly cash purchases of 5%. All other purchases are onaccount. Accounts payable are settled as follows, in accordance with the credit terms -2/30, n60:60% in the month in which the inventory is purchased40% in the following monthiii)Fixed operating expenses which accrue evenly throughout the year, are estimated to be$1,680,000 per annum, (including depreciation on non-current assets of $420,000 perannum) and is settled monthly.iv)Wages and salaries are expected to be $2,280,000 per annum and will be paid monthly.v)Other operating expenses are expected to be $108,000 per quarter and will be settledmonthly.In the month of November, an old motor vehicle, which cost $650,000, will be sold to anemployee at a gain of $30,000. Accumulated depreciation on the motor vehicle at that timeis expected to be $540,000. The employee will be allowed to pay a deposit equal to 60% ofthe selling price in November and the balance settled in two equal amounts in December2021 & January of 2022.vi)vii)Computer equipment, which is estimated to cost $320,000, will be acquired in November.The manager has made arrangements with the dealer to make a cash deposit of 50% of theamount upon signing of the agreement in November, with the balance to be settled in fourequal monthly instalments, starting in December 2021viii) The management of Miller Merchandising Company has negotiated with a tenant to rentoffice space to her beginning November 1. The rental is $624,000 per annum. The firstmonth's rent along with one month's safety deposit is expected to be collected onNovember 1. Thereafter, monthly rental income becomes due at the beginningmonth.each1:48 pmO Type here to search23/04/2021近 Snip & SketchO Newix)Taxation of $85,000 has to be settled in December.A money market instrument purchased by the company with a face value of $300,000 willx)mature on October 15, 2021. In order to meet the financial obligations of the business,management has decided to liquidate the investment upon maturity. On that date quarterlyinterest computed at a rate of 5% per annum is also expected to be collected.хі)The cash balance at December 31, 2021 is expected to be an overdraft of $236,000.Required:(a)The business needs to have a sense of its future cashflows and therefore requires thepreparation of the following:A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months October to December.• A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months October to December.· A cash budget, with a total column, for the quarter ending December 31, 2021, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.(b)Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter and has asked you to furnish him with the figures for the expected tradereceivables and payables to be included in the statement at December 31, 2021. Is that areasonable request? If yes, what should these amounts be?(c)Upon receipt of the budget the team manager has now informed you that the managementof Miller Merchandising & More have indicated a desire to maintain a minimum cashbalance of $125,000 each month. Based on the budget prepared, will the business beachieving this desired target? Given that the management does not wish to borrow anyfunds from outside sources, suggest three (3) internal strategies that the business mayemploy in order to improve the organization's monthly cash flow. Each strategy must be fullyexplained.1:49 pmO Type here to search23/04/2021

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Cash budget of the business means expected cash inflows and cash outflows of the business during the…