Below is the sales forecast, in shillings, for the upcoming year for BeachTo BeachTop collects 6 percent of each month's sales in cash, 45 percent1 the second month after the sale. Examination shows that 3 percent of sale QUESTION THREE rcent 1 month later, and 17 perce that month and 50 percenten rchases and the associated The-other cash Bows for the se purchases do not occur within the same month. yhe-other cashBd o pu o-month's purchases are 50percent of the forecasted sales amount for last quarter of the year November, a principal repayhent of Ksh 165 in December, interest payment of Kshreceived in tax payments of Ksh 40 in December, cash proceds from asset sales of Ksh 35 next month's sales forecast. All purchases are paid on "'net 30 terms, r through December) are Ksh 15 interest income to be (Octobe acquisitions of Ksh 75in November. BeachTop policy mandates that a pinmum of Ksh ters and asset tandinoekeptn A. November, a principal repayment of um of Ksh 100 bed assel cash at all limes. Ending cash in September is Ksh 165, and the company has no outs term borrowing or investments at that point in time. MONTH SALES FORECAST MONTH SALES FORECAST Ksh 36 Ksh 38 Ksh 50 Ksh 55 Ksh-59- Nov Ksh 65 Dec Ksh 75 Ksh 63 Ksh 57 Ksh 40 Ksh-32 Ksh 45 Ksh 40 Jan Mar Oct June Jan Required: Based on this information, prepare a cash forecast for October through December using the cash receipts and disbursements method. Interpret your projections-for-the cash surplus'shortage. Page