Please complete a,b and c

Problem 2 (15 points) Inert Company is preparing its budget for Quarter 1. The following data have been extracted from the operational budgets: January March February $450,000 Sales revenue $500,000 $550,000 Direct material purchases $200,000 $250,000 $150,000 Additional information is available as follows: The company sells all goods on credit. Cash collection pattern is: 70% is received within the same month as sale and 30% is received in the following month. At the beginning of January there is $125,000 of accounts receivable. 50% of payments for direct material purchases are made in the month of purchase, with the remaining 50% in the month following purchase. At the beginning of January there is $60,000 of accounts payable The company pays labor and overhead costs when they are incurred. It has been estimated that labor and overhead costs in total will be $303,600 per month. The company maintains a 12% per year open line of credit for $200,000. It borrows on the first day of the month and repays loans on the last day of the month. The Company maintains a minimum cash balance of $10,000. The cash balance at the beginning of January is estimated to be $49,400. Required: a. Prepare the expected cash collection schedule for Quarter 1. b. Prepare the expected cash payment schedule for direct material purchases for Quarter 1. C. Prepare a cash budget for Quarter 1