CASE 2 (20 points) Here are some important figures from the budget of Wise Corporation for the third quarter of 2020: July August September Credit sales $1.275.800 $1.483.500 $1,096,300 Credit purchases 765.480 890.160 657,780 Cash disbursements Wages, taxes, and expenses 348,600 395,620 337,150 Interest 29.900 29.900 29.900 Equipment 0 158.900 96.300 Credit sales collections Collected in month of sale 35% Collected month after sale 60% Never collected 5% June credit sales $1,135.020 June credit purchases $ 681,012 Beginning cash balance $ 425,000 All credit purchases are paid in the following month after the purchase. Instructions: a) Using the above information, complete the following cash budget. (15 points) Beginning cash balance Cash receipts: Cash collections from credit sales Total cash available Cash disbursements: Payments for purchases Wages, taxes, and expenses Interest Equipment urchase Total cash disbursements Ending cash balance b) What are the steps in preparing cash budget? Explain. (5 points) Beginning cash balance Cash receipts: Cash collections from credit sales Total cash available Cash disbursements: Payments for purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance