3 (15 marks) Cander Ltd manufactures sofa sets and sells to department stores all over Australia. Assume that Cander's sales are collected as follows: 50% in the month of the sale 30% in the month after the sale 18% two months after the sales 2% never collected November sales totaled $300,000 and December sales were $325,000. The sales budget for January was $262,500 and February was $ 306,250 respectively. Required: a) Prepare a schedule for the budgeted cash receipts from customers for January and February. Round answers to the nearest dollar. (4 marks) Assume Cander Pte Ltd pays for direct materials purchases 60% in the month of purchase and 40% in the month after purchase. The Accounts Payable balance on January 1 is $25,000. Total direct materials purchases for January were $ 96,505 and February were $ 115,245. Prepare a schedule for the budgeted cash payments for purchases for January and February. Round to the nearest dollar. (3 marks) c) Cander Pte Ltd has $12,500 in cash on hand on January 1. Following information are the cash payments for January and February. Budgeted manufacturing Budgeted direct labor cost overhead costs Selling and administrative expenses January $ 44,250 $25,140 $52,625 February $ 52,650 $ 26,540 $53,063 The company requires a minimum cash balance of $10,000. Assume there is no financing for the two months. Prepare a cash budget for January and February. Round to the nearest dollar. Will Cander Pte Ltd need to borrow cash by the end of February? (8 marks) Question 4 (15 marks)