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Task 3 [covers learning outcomes 3 and all assessment criteria] 1. What is the purpose and nature of budgeting? 2. Select two organizations from different sectors and suggest the budgeting process to be used in them with its pros and cons? 3. From the given set of data, prepare a cash budget with. These are the information given for Calgon Products, a distributor of organic beverages. A). the cash balance at the beginning of September is $ 11,000. B). actual sales for July and expected sales for September are as follows: July August September Cash sales $ 6,500 $ 5,250 $ 7,400 Sales on account $ 20,000 $ 30,000 $ 40,000 Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 80% collected in the following sale, and 7% collected in the second month following sale. The remaining 3% is uncollectible. C). Purchases of inventory will total $ 25,000 for September. 20% of month’s inventory purchases are paid for during the month of purchase. The accounts payable remaining from Augusts’ inventory purchases total $ 16,000, all of which will be paid in September. D). selling and administrative expenses are budgeted at $ 13,000 for September. Of this amount $ 4,000 is for depreciation. E). equipment costing $ 18,000 will be purchased for cash during September, and dividends totaling $ 3,000 will be paid during the month. F). the company maintains a minimum cash balance of $ 5,000. An open line of credit is available from the company’s bank to bolster the cash position as needed. Required: (1) Prepare a schedule of expected cash collections for September (2) Prepare a schedule of expected cash disbursements for merchandise inventory purchases in September. (3) Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September.