4 SALES(000s) PURCHASE(000's) CASH BUDGET AUGSEPTOCTNOVDEC I.CASH INFLOWS 1. Cash Sales =St..4 1. What is the 4th Quarter's Earnings Available to Common Stockholders 2. What is the Total Cash Inflow for October? 3. What is the Net Cash Flow for November? 4. What size loan is needed? You are given the following information for the Boodro Company: Forty percent of the sales each month are for cash. Thirty percent of sales are collected in the month following the sale and thirty percent is collected two months following the sale. Costs of Goods Sold (CGS) are equal to 70% of sales. Boodro pays cash for 80% of its purchases and pays the other 20% the month following the purchase. Other monthly cash expenses are estimated at $40,000 (rent), $35,000 (salaries) and $15,000 (interest). Depreciation, which is the only non-cash expense, will be $60,000 per month. No change is expected in the 30% income tax rate. Income tax expense for October through December (4th QTR) will be paid in December.name Preferred Dividends of $100,000 will be paid in October. Equipment totaling $1,500,000 will be purchased for cash in November. In November, the firm will sell equipment for its book value (no tax consequence) of $500,000. The money will be collected in December. The Company intends to float a $10,000,000 (raise capital by issuing new stock) preferred stock issue in October. There will be a 10% investment banker fee, which will be paid in October (disregard for the income statement). The money for the preferred stock issue will be received in December. The cash balance is $500,000 on October 1 , and a minimum balance of $500,000 is desired. REQUIRED: Prepare a monthly cash budget for the Company. Do not forget to prepare a quarterly pro forma income statement to determine the expected income tax. PROFORMA 4th QTR INCOME STATEMENT SALES $