2. As the manager of a new outlet in the XYZ Towers Mall, you have been asked to prepare a cash budget for the first three months of the year. The store is expected to open on January 1. Sales revenue is budgeted to be: $500,000 in January, o $600,000 in February, o $750,000 in March, and o $400,000 in April. All sales are for cash. Selling price is calculated by adding 100% to the cost of goods (example: if cost is $50, selling price is $100). The plan is to buy enough inventory initially to provide for January sales and have enough inventory on hand at the end of January for February's sales, and so on. (i.e. the manager will need to purchase inventory to ensure they can meet the its first month of sales of $500,000 in January ($250,000 of inventory). Goods are paid in cash when purchased. Wages of $10,000 are paid each month, plus commission (10% of sales) Rent of $10,000 per month is paid monthly, with "first and last" paid on January 1. Required (a) Prepare a cash budget for the first three months of the year. (b) Identify the when the maximum cash will be required and the amount of cash required at that time.