1. Challenge Question (if you want to save time, you can skip this question): GTA Ltd's September balance sheet contains the following information: Oct Nov Beginning Balance $37,500 Collection of A/R from Sep 123,200 Collection of A/R from Oct 192,500 154,000 Collection of A/R from Nov 231,000 Business has decided $37,500 to be minimum monthly cash balance. Please also check following information Company has September ending inventory balance $26,250 calculated by using Beginning Inventory+New inventory of purchase - COGS) October Sales cost (Cost of goods sold) is $ 210,000; November Sales Cost is $252,000 All accounts payable for inventory are paid in the month of purchase. Management's target ending balance of merchandise inventory is 10% of the current month's sales cost. Other monthly expenses ( office building) are $47,250, which includes $3,500 of amortization If cash in short, business borrows money, annual interest rate is 10%, payable every quarter. If there is cash-over, business will make shor-term investment, Borrowings and investments are to be made in increments of $6,250, quarterly interest earned will be 8% per year. Required Prepare material purchase budget for October and November Prepare the cash budget for Oct and Nov including the effects of financing or investing). Interest is earned or paid quarterly. 5 Paragraph - BLE Optie