Question 5 (20 marks) Part 1 (12 marks) Mattress World is a retailing business that sells mattresses. The expected sales volume (i.e. units of produd to be sold) for the first four months in 2020 are as follows: Month Sales (unit) January 100 February 140 March 130 April 120 The following additional information is available: Budgeted purchase price for mattresses is $100. 30 units were in the inventory at the end of December 2019. Mattress world maintain an ending inventory balance of 30% of the next month's expected sales. Required Prepare the Inventory and Purchase Budget for the first three months in 2020. (12 marks) Part 2 (8 marks) The following information pertains to Moon Ltd in 2020: Month Sales Purchases January $ 62 000 $ 33000 February 84 000 42000 March 101 000 61000 Cash is collected from customers in the following pattern: Month of sale 40% Month following the sale 60% 45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Employee's wages are 30% of sales. Other operating costs are $38 000 per month (including $10000 of depreciation). Both of these are paid in the month incurred. Required Calculate the budgeted total cash payment in March 2020. (8 marks)