Case-1: Cash Budget (Marks: 25) Total Care Corp., a distributor of herb-based sun screens, is ready to begin its fourth quarter, in which pick sales occur. The company has requested a Tk. 40,000 three-month loan from its bank to help meet cash requirements during the quarter. Since Herbal Care has experienced difficulty in paying off its loan in past, loan officer at the bank has asked the company to prepare cash budget for the quarter. In response to this request, the following data have been assembled: a. On October 01, the beginning of the third quarter, the company will have a cash balance of Tk. 44,500. b. Expected cash collection from client against credit sale for the quarter follow: Month October November December Expected Collections Tk. 317,500 439,000 512,000 c. Budgeted merchandise purchases and expenses for the fourth quarter are given below: Items/Months Merchandise purchase Salary and wages Advertising Rent payment Depreciation October Tk.240,000 45,000 130,000 9,000 10,000 November December Tk.350,000 Tk. 175,000 50,000 40,000 145,000 80,000 9,000 9,000 10,000 10,000 Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases on September 30, which will be paid in October, total Tk. 180, 000. Other cash related operating expenses are paid during the month when they are incurred. d. Equipment costing Tk. 10,000 will be purchased for cash during October. e. In preparing the cash budget, assume that the Tk.40,000 loan will be made at beginning of October and repaid at the end of December along with three months' interest @12% annually. Required: Prepare a cash budget, by month and in total, for the fourth quarter