Question 2 (Approximate completion time: 30 mins) (CLO 4 (Total 25 marks) Xcom is a small retailer that sells phone cases. The following estimates are available for the coming period: Month Budgeted Sales (Units) April 40,000 May 50,000 June 44,000 Notes: i. Opening cash balance for the month of May is expected to be $9,250. ii. Inventory policy- ending inventory of finished goods equal to 25% of that month's sales. iii. Budgeted selling price per case- $40 iv. Purchase price per case - $10 (purchase volume greater than 30,000 cases per month will receive a 5% discount). Collections from customers: 80% in the month of sale 20% one month after the sale vi. Monthly operating expenses are budgeted at: Marketing $20,000 per month Sales commission (5% of Total Sales Collection for the month) Administration cost per month is $18,000. This includes depreciation of $2,000 per month. vii. All expenses and purchases are paid in the month incurred unless otherwise specified. V. . . 0 . Required: For the month of May, you have been asked to prepare: a. Purchases budget in units and dollars (10 marks) b. Sales collection schedule (3 marks) c. Cash Budget (10 marks) d. Explain the meaning of the term 'Rolling Budget' (2 marks) (Total Marks 25 marks)