Bobcat Printing makes custom t---shirts and other promotional products for student organizations and businesses. It is beginning its first year of operations and needs to plan for its first quarter of operations. They would like to maximize their profits, and understand that accurate budgeting can help achieve that goal. The budgets will be prepared based on the following information: a. Sales are budgeted at $20,000 for Month 1, $25,000 for Month 2, and $27,000 for Month 3. All sales will be done on account. Company does not expect to have any cash sales. b. Sales are collected 60% in the month of the sale, and 40% in the month following the sale. c. Cost of Goods Sold is budgeted at 45% of Sales. d. Monthly selling, general, and administrative expenses are as follows: donations are 10% of sales; advertising is 3% of sales; miscellaneous is 1% of sales; and rent is $5,000 per month. All SG&A expenses are paid in the month they are incurred. e. Sincealloftheordersarecustommade,noinventoryiskeptonhandattheendofthe month. f. Inventory purchases are paid in full in the month following the purchase. g. Bobcat Printing is planning to purchase a building in Month 3 for $6,000 in cash. h. Theywouldliketomaintainaminimumcashbalanceof$2,500attheendofeachmonth. Thecompanyhasanagreementwithalocalbankthatallowsthemtoborrow,withatotalline of credit of $20,000. The interest rate on these loans is 1% per month (12% annual). They would as far as able, repay the loan on the last day of the month when it has enough cash to pay the full balance and maintain an adequate ending cash balance. i. Theownermakesadrawof$3,000everymonth.(Note:soleproprietorsand partnerships take owners draws, while stockholders receive dividends). Based upon the information provided, complete the operating budgets provided in the excel template, and answer the questions in TRACS. When making calculations always round up (for example: 33 7% = 2.31, round up to 3.00). Check Figures: Gross Margin = $39,600 Total assets = $19,300 Ending Retained Earnings = $5,507

Questions9) What is the projected beginning cash balance for Month 1?

A. $0

B. $7,500

C. $300

D. $2,500

10)

What is the projected ending cash balance for Month 1?

A. $2,500

B. $1,100

C. $8,000

D. None of the above

30)

What is the projected interest payable for the first quarter of operations?

A. $19

B. $0

C. $13

D. $34

31)

What is the projected net cash flow from operating activities for the first quarter of operations?

A. $22,800

B. $12,000

C. $15,857

D. $10,800

32)

What is the projected net cash flow for investing activities for the first quarter of operations?

A. ($9,000)

B. ($6,000)

C. $6,000

D. $9,000

33) What is the projected cash flow from financing activities for the first quarter of operations?

A. $7,357

B. $9,000

C. ($2,500)

D. ($7,357)

E. ($9,000)