The Doley Company has planned the following sales for the next three months: Sales are made 20% for cash and 80% on account.

The Doley Company has planned the following sales for the next three months: Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern:The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000.Required:a. Compute the budgeted cash receipts for March.b. The following additional information has been provided for March:Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part (a) above. The company can borrow in any dollar amount and will not pay interest until April.

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