Budgeted sales are: rou coirect 50% of sales revenue as cash in the month of the sale, 30% in the following month, and 20% two months after the saie. a) Compute budgeted cash inflows for October and November: October =$ (No Response) November a \$\$(No Response) Remember to go backwards in time: e.9. 30% of September revenue is collected in the following month (October). This implies that cash b) Accerd YES What are some examples of how a firm could run out of cash? (select all that apply) Rapid sales growth: A firm incurs many cash outflows in advance to generate sales (e.g, salaries, payments to suppliers), and it collects cash inflows from sales w increase cash outflows today, but the corresponding cash inflows will increase with o delay of a few months. The firm can run out of cash during thila delay. Purchase of new equipment: If a firm buys major new equipment for cash, then it has a large cash outflow in the current year. Current years income statement don annual depreciation expense in future income statements during the entire useful life of the equipment). Trick question: by definition, a profitable firm must have higher cash inflows than cash outfiows. c) A firm is about to run out of cash. What can it do to mitigate the cash shortage? (select all that appiv) encourage customers to pay in cash (e.g. offer a discount for cash payment) postpone equipment purchases repay bank loans eariy to reduce debt buy new equipment encourage customers to pay their bills early (e.g. offer a discount for eariy payment) postpone payments to suppliers borrow money