2. The Watree Lodge is struggling with cash flow and has been waiting until the last minute to pay its vendors. The Watree is a beautiful ski lodge located in a popular area, but during the summer months hotel guests become scarce and cash management becomes a major problem. Because the Watree is independently owned and operated, every once in a while the owners must provide additional funds to carry the business over. Mr. Tom Broli has just been hired as the controller at the Watree and is in the process of analyzing all of its financial statements. The previous controller had to be replaced because he did not have an understanding of the business and knowledge of cash management. The general manager hired Mr. Broli because he heard that Tom was an experienced controller and very competent in financial management. Tom's first goal is to look at cash forecasts in the table below to help himdetermine where he can make improvements Credit Sales 70% collected in next month 30% collected in two months Cash sales Credit Purchases due in 30 days Cash purchases Payroll34% of total sales Service on mortgage Quarterly payments Ouarterly Insurance Payment Partner distribution due quarterly May $65,500 45,850 19,650 18,500 24,500 4,100 28,560 June $58,950 41,265 17,685 16,650 24,990 4,141 25,704 15,450 5,400 10,000 July $53,055 37,139 15,917 14,985 25,490 4,182 23,134 August $47,750 33,425 14,325 13,487 26,000 4,224 20,820 September $52,524 36,767 15,757 14,835 26,520 4,266 | 22,902 15,450 5,400 10,000 Require: 1. From the information provided in the table, determine available cash for the months of July, August, and September. Assume a beginning cash balance of $(10,000) in July. 2. How can this property better manage its working capital? Provide specific suggestions for Watree Lodge management. 2. The Watree Lodge is struggling with cash flow and has been waiting until the last minute to pay its vendors. The Watree is a beautiful ski lodge located in a popular area, but during the summer months hotel guests become scarce and cash management becomes a major problem. Because the Watree is independently owned and operated, every once in a while the owners must provide additional funds to carry the business over. Mr. Tom Broli has just been hired as the controller at the Watree and is in the process of analyzing all of its financial statements. The previous controller had to be replaced because he did not have an understanding of the business and knowledge of cash management. The general manager hired Mr. Broli because he heard that Tom was an experienced controller and very competent in financial management. Tom's first goal is to look at cash forecasts in the table below to help himdetermine where he can make improvements Credit Sales 70% collected in next month 30% collected in two months Cash sales Credit Purchases due in 30 days Cash purchases Payroll34% of total sales Service on mortgage Quarterly payments Ouarterly Insurance Payment Partner distribution due quarterly May $65,500 45,850 19,650 18,500 24,500 4,100 28,560 June $58,950 41,265 17,685 16,650 24,990 4,141 25,704 15,450 5,400 10,000 July $53,055 37,139 15,917 14,985 25,490 4,182 23,134 August $47,750 33,425 14,325 13,487 26,000 4,224 20,820 September $52,524 36,767 15,757 14,835 26,520 4,266 | 22,902 15,450 5,400 10,000 Require: 1. From the information provided in the table, determine available cash for the months of July, August, and September. Assume a beginning cash balance of $(10,000) in July. 2. How can this property better manage its working capital? Provide specific suggestions for Watree Lodge management