2 Prepare a "Budget Variance Report" as of March 31, 2020. Provide possible explanations for any variances in excess of $5,000 as of March 31, 2020.

3 Prepare a "Cash Flow Budget", on a quarterly basis, given the following:

(a) Assume actual revenues and expenditures for 2020 are the same as quarterly budget distributions developed in Part 1 of this question.

(b) The company borrowed $48,000 in April, 2020 to be repaid monthly over the next year (starting in May, 2020). In addition to the principal repayment, $100 of interest will be paid each month

(c) The company bank balance is $100,000 on January 1, 2020

(Hint : Cash Balance at December 31, 2020 $147,400)

4 The CFO has asked you for comments on the projected cash flow for 2020. What points would you bring to the CFO's attention?