4. Prepare a cash budget for Puerto Rico Food Franchise Group (PRFFG, owners of Krispy Kreme franchisee in Puerto Rico among others food franchise) for the last three months of the year, based on the following information. a. PRFFG had sales of $3,000,000 in August and $ 4,500,000 in September. The company predicts sales of $ 1,000,000, $1,500,000 and $ 2,000,000 for October, November and December respectively. Based on past experience, the company estimates that 60% of sales are cash, while 40% are collected in the next month (following the sale). PRFFG also receive other interest income of $ 50,000 from marketable securities in December b. Considering sales forecasts as detailed in Part , PRFFG needs a cash disbursement schedule for the months comprising sales forecasts. The company made purchases of $3,500,000 and $ 2,000,000 in August and September respectively. The company predicts purchase of $500,000 ; $750,000 and $1,000,000 for October, November and December respectively. In addition, the company has gathered the following information for you (as a financial manager) to prepare a cash disbursement schedule for October, November and December 40% of purchases are made in cash. 60% of purchases are paid for one month after purchase. Wages and salaries are 15% of the previous month's sales. Lease payment of $ 100,000 per month. A payment of principal and interest of $150,000 is due in December. Cash dividend of $50,000 will be paid at the end of the quarter. New equipment costing $600,000 will be purchased and paid for in December. Puerto Rico Food Franchise Group Cash Budget Worksheet Fourth Quarter, 2011 September October November December