4) Prepare a cash forecast for the last quarter of the year (October - December) for a firm with the following forecast for sales and other, non-operational cash flows. Comment on the firm's monthly cash position August September October November December Sales Forecast $ 70.0 $ 62.0 $ 40.0 $ 29.0$ 52.0 Purchases Forecast $ 49.0 $ 43.4 $ 28.0 $ 20.3 $ 36.4 Sales are expected to be collected on the following basis: 5% - Cash 45% - Collected one month later 47% - Collected two months later 3% - Uncollectible . Purchases represent 70% of forecasted sales. The firm is offered 30 day terms from its suppliers. So it will pay for its purchases one month later. For example, the firm will pay for the August purchases ($70 x 7 = $49) in September Use the following chart to forecast this firm's cash needs. The October net cash position is solved for you as an example, - CASH INFLOWS OCTOBER NOVEMBER DECEMBER Cash Sales 5% $ 2.0 Credit Sales 45% 27.9 $ $ Credit Sales 47% 32.9 Cash Flow from Sales $ 62.8 Other Cash Inflows $ 35.0 $ 35.0$ 10.0 $ $ Total Cash Receipts $ 97.80 CASH OUTFLOWS Cash Flow from purchases (70% of prior month sales) $ $ 43.40 Other Cash Outflows $ $ $ 75.00 $ 120.00 Total Cash Disbursements $ 43.40 NET CASH FLOW $ 54.40 Beginning Cash 145.0 $ 199.4 $ $ Ending Cash 199.4 Cash Reserves $ 100.0 $ 100.0 $ 100.0 Net Cash Position $ 99.4