Can someone please help me to answer those questions

4. Refer to the projected income statement and cash flow that you initially obtained. (3 points) a) Why is Highlands projected NOI so much greater than the change in cash for the quarter (i.e., why does the company need to borrow on its LOC when there is positive NOI)? Explain. b) What specific actions could you suggest Highland take to improve its projected cash flow? Explain.

April May June I Total Check Figures $315,000 $405,000 $540,000 $1,260,000 Sales Less variable expenses T 225,000 T Cost of Goods sold 175,000 300,000 700,000 T 22,500 T 17,500 Sales commissions 30,000 70,000 Shipping & handling 14,000 18,000 24,000 56,000 206500 265500 354,000 826,000 $108,500 $139,500 $186,000 $434,000 Total variable expenses Contribution margin Less fixed expenses wages and salaries $34,800 $34,800 $34,800 $104,400 Rent s 7000 7000 7000 21,000 Utilities 's 2,400 2,400 2,400 7,200 's 1.000 1,000 1.000 Insurance expired 3,000 's 2,500 2,500 2,500 Depreciation 7,500 's 3700 3700 3,700 Other S&A 11,100 Advertising Campaign $51,400 $154.200 Total fixed expenses $51,400 $51,400 S57100 $88,100 $134,600 $279,800 279,800 Net Operating Income Less: Interest Expense 744 $87,356 $134,538 $278,648 S 278.648 Net Income $56,755