Aug Oct Nov QUESTION THREE (Topic 2b) (Total 14 marks) Pinner hardware expects the following sales in units in 2019/2020 for one of their products: Sep Dec 2019 Jan 2020 48,000 40,000 46,000 55,000 56,000 40,000 30%. Sales are 70% credit sales with the remainder cash 50% of customers pay in the month following sale, 48% in the month following that (2 months from the sale) and 2% are uncollectable (bad debts). In 2019 the business has had a target for finished inventory of 25% of the following month's sales units. The units are purchased for $12 and sold for $30 each. Payment for purchases is made in the month following purchase. Ignore GST Required: 1. Prepare the sales budget for the quarter October - December 2019 (showing each month and the total for the quarter) (see format p. 106 Exhibit 3.6). Include a schedule of expected cash collections. (7 marks) 2. Prepare the purchases budget for the quarter October - December 2019 (showing each month and the total for the quarter) (see format p.111 Exhibit 3.11) Include the expected payments for purchases. (7 marks) ens Practice online examination Antempt review Complete Marked out of 1.00 2 The following information relates to Hereford Ice Creams: Projected unit sales 2020: July 5,000 August 8,000 September 6,000 October 5,000 November 4,000 The average cost of purchasing an ice cream from the supplier is $2.00. Hereford Ice Creams has a policy of maintaining closing stocks of ice creams at 15% of the next month's unit sales. The cost of purchases for September 2020 is: Select one: a. 11,700 b. 5,850 c. 520 d. 6,750 e. 12,120