21 1 AaBbCcDc AaBbCcDc AaBbc AaBbcc AaB AalbCcc ABCD ABCD ABCD Aa T Normal No Spac... Heading 1 Heading 2 Title Subtitle Subtle Em Emphasis intense. S Styles Actual Sales Dec. Jan. Feb. 2019 2020 $375,000 $266,667 $200,000 March Estimated Sales 2020 April May June July $200,000 $350,000 August $300,000 $450,000 $350,000 $250,000 25% of sales are for cash, 75% of sales are on credit. The firm collects 65% of the credit sales during the first month after the sale and the remainder during the following second month. Inventory purchases constitute 68% of the next month's sales. All inventory purchases are made on credit. The company pays for 40% of inventory purchases during the first month after the purchase was made and for the remainder in the next month. Monthly wages, taxes and other expenses are expected to be 28% of the current month's sales. A major capital expenditure of $50,000 is expected in March. Installments of amortized long-term debt are expected to be $90,000 every quarter due in February, May, August, and November (write a formula for these payments using dates as inputs as we did in class). The company needs a minimum cash balance of $30,000. The cash balance at the end of January 2020 was $35,000 a. Using the simple cash budget example from Chapter #4 in the textbook or from the class, help the financial staff of the Speed Bug Inc. to prepare their cash budget for February through July 2020. Assume that the firm uses any cash surplus above the required minimum cash balance to pay off its short-term borrowing monthly and that the annual interest on its short-term borrowing is 10%. Construct a budget title that indicates the time period for the budget. The title should be linked to the dates in the budget and should change whenever the dates change. b. Assume that the Speed Bug Inc. has some flexibility in scheduling the major capital expenditure of $50,000 expected in March. Specifically, it can postpone the expenditure until April or May, but no later than that. Use the Scenario Manager to see in what month (March, April, or May) the Speed Bug Inc. should make this expenditure in order to minimize the maximum borrowing and short-term Interest, Create a scenario summary using the example we did in class (or in Chapter 4 of your text). Make sure to name the cells that are inputs to the scenario manager. Please answer the question: What month would be the best for scheduling the capital expenditure