5) A FIRM USES THE STONE MODEL. THE FIRM MAKES THE FOLLOWING ASSUMPTIONS AND DATA FROM THE MILLER-ORR MODEL: Miller-One control limits are $25,000 (LCL) and $120,000 (UCL). The company uses a 7-day look-ahead period and a k of 3 days. The retum point is $60,000, and the present cash balance is $45,000. A 5% forecasting error is associated with the following projected daily net cash flows: Day Cash Flow Forecast 0 1 2 3 $80,000 $50,0001 ($25,000) $5,000 ($10,0001 4 5 6 $25,000 $45,000 A. Complete the following chart - Day O is calculated for you: curent cash balance +3 days of cash flows, so $45,000+ $80,000 - $50,000 - $25,000 = $50,000 CASH BALANCE DAY CASH FLOW FORECAST CASH BALANCE IN 3 DAYS $50,000 0 $45,000 1 $80,000 $125,000 2 3 4 5 6 7 B. Establish the Stone Control limits. C. What transactions should the cash manager plan to make during the next 2 days, if any