Assume 90 day quarters. Only use whole numbers. No decimals. At the beginning of the first quarter fiscal year 2017, Callahans Inc. has a cash balance of $460. During the quarter, the company collects the quarters sales plus the beginning A/R balance. Callahans material cost is 55% of sales and they purchase the material a quarter before the sale. Their accounts payable period is 25 days and the beginning A/P balance is $73. They have debt of $800 for which they pay 2.5% interest every quarter. They also have a tax payment of $70 every quarter. Wages and other expenses are 20% of sales. Prepare a cash budget for Callahans for their fiscal year 2017 based on the below sales forecast. Suggest a minimum amount of cash you feel they should always maintain, use your suggestion to calculate surplus/deficit, and explain your reasoning. Sales forecast Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 $480 $480 $560 $600 $800 $800 Callahans Inc. Cash budget FY2017 Q1 Q2 Q3 Q4 Beginning Balance + Total Cash Collection Account Payable Interest Tax payments Wages & other expenses - Total Cash Disbursements Ending Balance - Minimum Balance Surplus/Deficit