Projected Sales 40% of sales are anticipated to be to cash paying customers The rest will be credit customers.To encourage prompt payment, Collectivia will offer terms of 2/30, n/60. That means customers get 2% off if they pay within 30 days.The balance is due within 60 days.Based on experience in similar businesses, it is anticipated that 70% of the credit customers will take advantage of these terms and pay in 30 days, which means they will pay 2% less than what is owed. That leaves 30% of the credit customers.Again based on past experience, it appears the 30% will break down as follows: 15% will pay in the following month after the sale; 10% will pay 2 months after the sale; and unfortunately 5% will not pay at all and those accounts will be written off as uncollectible. Because Collectivia is a new business there is no beginning A/R balance from a previous period, because there is no previous period. The accountant had starteda diagram and a cash collections schedule but then consumed too many Triple Venti Half Sweet Non-fat, Half Decaf Soy Caramel Macchiatos and became disoriented. Required: Finish the Expected Cash Collections Budget.Use 2 decimal places for cents.A colorful budget is optional, but may be helpful in tracking sales and months. Color or no, use Good Form.Include 2 decimal places. Cash Sales in Current Month Sales on Account Collected in Current Month less discount Sales Collected 1 Month After Sale Sales Collected 2 Months After Sale Total Collections for the Month Payleast Socks has the following information. Cashew Candy Cups needs a Cash Budget prepared for the period ending 12/31 of the current year. Supporting Budgets for the same time frame are in gray Budget totals represent Q1, Q2, Q3, Q4, YEAR All dollar amounts result from cash transactions. Not all of the budgets provided are used to create a cash budget. In addition to the budgets, the following information is needed: is taken out to return to a $2,000 balance.Interest on the loan is 6% and is payable in 3 months when the loan is due, which is the start of the next quarter. Note: the amount that is borrowed in this example is less than would realistically be borrowed from a bank. No other cash transactions or changes, beyond what is listed. Required: Prepare a Cash Budget for the Current Year in Good Form.Whole dollar amounts are fine, until the Financing section. ,Q ATTACHMENT PREVIEW Download attachment cash and budgets.xlsx CASH COLLECTIONS AND PAYMENTS AND THE CASH BUDGET (50 PTS) PROBLEM #1 The Collectivia Coffee Wholesaler Shop is a new company that has not yet started operations. It has the following information regarding anticipated sales and collections. Projected Sales $ Jan 1,500 $ Feb 1,200 $ Mar 1,150 $ Apr 1,550 $ May 1,600 $ Jun 2,000 $ Jul 2,400 40% of sales are anticipated to be to cash paying customers The rest will be credit customers. To encourage prompt payment, Collectivia will offer terms of 2/30, n/60. That means customers get 2% off if they pay within 30 days. The balance is due within 60 days. Based on experience in similar businesses, it is anticipated that 70% of the credit customers will take advantage of these terms and pay in 30 days, which means they will pay 2% less than what is owed. That leaves 30% of the credit customers. Again based on past experience, it appears the 30% will break down as follows: 15% will pay in the following month after the sale; 10% will pay 2 months after the sale; and unfortunately 5% will not pay at all and those accounts will be written off as uncollectible. Because Collectivia is a new business there is no beginning A/R balance from a previous period, because there is no previous period. The accountant had started a diagram and a cash collections schedule but then consumed too many Triple Venti Half Sweet Non-fat, Half Decaf Soy Caramel Macchiatos and became disoriented. Required: Finish the Expected Cash Collections Budget. Use 2 decimal places for cents. A colorful budget is op