4-2 Cash budget and pro forma balance sheet inputs Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales and cash disbursement estimates for the period February-June of the current year. McDonald notes that, historically, 30% of sales have been for cash. Of credit sales, the firm collects 70%1 month after the sale, and it collects the remaining 30%2 months after the sale. The firm wishes to maintain a minimum ending balance in its cash account of $25. The firm will invest balances above this amount in short-term government securities (marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable). The beginning cash balance at April 1 is $115. a. Prepare cash budgets for April, May, and June. b. How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this 3-month period? c. A pro forma balance sheet dated at the end of June is to be prepared from the information presented. Give the size of each of the following: cash, notes payable, marketable securities, and accounts receivable