(Cash buyetThe Sharpe Corporation's projected sales for the first 6 months of 2016 are the in the following table. I (1 Sharpe 's sales, 10 percent is to cash, another 40 percent is collected in the month Tollowing the sales, and all percent is collected in the second month tolowing sales November and December sales for 11s were $75I,000 and $0sCCIa, 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 at Sharpe's products. The supplier is paid 1 month after it makes a delivery for example, purchases for Apnil sales are made in February, and payment is made in March . In addition, Sharpe pays $9,000 per month for rent and S17,000 each month for other expenditures. Tax prepayments of $20,000 are made each quarter, beginning in March. The company's cast balance on Decembei 31, 2015, was $24 ,000 . This is line minimum bralia the firm wants to train liain. Any borrowing that is needed to Taintain this minimum is paid off in the subseural Herlin i there is sufficier cash. Intercest cri 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 $60500, these funds would be borrowed at the heginning at April with interest of Shs (o 17 x 112 x $53,5l ) oved to April and paid at the beginning of May a. Prepare a cash budget to Shape covering the first 7 months of 2016 b. Sharpe has $200 CCI in notes payable due in July that must be repaid or renegotiated for an extension will the tirm have ample cash to repay the nates a. Prepare a cash budget to Shape covering the tirst 7 months of 2016 Fill in the Collections for the month of January (Round to the nearest dollar) Nov Dee Jan Feb 1 Mar Apr May June July sales s250 ,000 $205,00ol s220,000 s150 00031G5.cool $270 00c $330 000 $300,000 $25 00g collections L Month of sale (10%) 22000 First montti (405) Second month (50%) Total Collections s o