9. Nanook Company has projected sales for the second quarter of the year as follows: July August Sales $600,000 $725,000 Additional information: a. All sales are both cash sales and sales on account. Cash sales are 40% of the total sales. All sales on account are expected to be collected in the month following the sale. b. Production costs (material, labor, overhead) are expected to be $460,000. C. Selling and administrative expenses amount to $160,000 per month. Required: (6 points) a. Prepare a schedule of cash collections for the month of August. b. Prepare a cash budget. The company started August with a cash balance of $25,000. If the company requires a minimum balance of $20,000 on hand at the end of the month, will the company require additional financing for August? c. The company is thinking of purchasing a new machine in August that would cost $40,000. Would you recommend to the company to make that purchase in August? d. Why would a company prepare a budget? What kind of information does it give managers