Question 2 Cummings, a multi-milion-dollar corporation, has been accumulating operating data in order to prepare an annual profit plan. Details regarding Curmmings sales for the first cix months of the year are as follows: Collection pattem for credit sales Cash sales 20% Month of sales 30% credit sales 80% One month following sale 403 Second month following sale 25% Cummings cost of goods sold average 40% of the sales value. Cummings objective is to maintain a target. inventory equal to 30% of the next month's sales. Purchases of merchandise for resale are paid for in the month following the sale. The variable operating expenses (other than Cost of soods sold) for Cummings are 10 fi of sales and are paid for in the month following the sale. The annual foxcd operating expenses are presented below. All of these are incurred uniformly throughout the year and paid monthly except for insurance and property taxes. Insurance is paid quarterly in January. April, July and October. Property taxes are paid twice a year in April and October: Annual Fowed Operating Costs * Cash necerpts 60 Apicl Determine Cummings total cash receipts for the month of April. (10marks) Question 3