(Cash budget) The Sharpe Corporation's projected sales for the first 8 months of 2019 are shown in the following table: Of Sharpe's sales, 30 percent is for cash, another 40 percent is collected in the month following the sales, and 30 percent is collected in the second month following sales. November and December sales for 2018 were $260,000 and $215,000, respectively. Sharpe purchases its raw materials 2 months in advance of its sales. The purchases are equal to 50 percent of the final sales price of Sharpe's products. The supplier is paid 1 month after it makes a delivery. For example, purchases for April sales are made in February, and payment is made in March. In addition, Sharpe pays $8,000 per month for rent and $17,000 each month for other expenditures. Tax prepayments of $22,000 are made each quarter, beginning in March. The company's cash balance on December 31, 2018, was $22,000. This is the minimum balance the firm wants to maintain. Any borrowing that is needed to maintain this minimum is paid off in the subsequent month if there is sufficient cash. Interest on short-term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects to have a need for an additional $60,500, these funds monthly cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects to have a need for an additional $60,500, these funds would be borrowed at the beginning of April with interest of $605 (0.12 x 1/12* $60,500) owed for April and paid at the beginning of May. a. Prepare a cash budget for Sharpe covering the first 7 months of 2019. b. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for an extension. Will the firm have ample cash to repay the notes? a. Prepare a cash budget for Sharpe covering the first 7 months of 2019. Fill in the Collections for the month of January: (Round to the nearest dollar.) Nov Dec Jan Feb Mar Apr May June July $260,000 $215,000 $230,000 $160,000 $175,000 $280,000 $340,000 $310,000 $265,000 Sales Collections: Month of sale (30%) First month (40%) Second month (30%) Total Collections $ (Click on the following icon in order to copy its contents into a spreadsheet.) January February March April $230,000 160,000 175,000 280,000 May June July August $340,000 310,000 265,000 190,000