Chapter $9$ Profit PlanningProblem $9-53$ Cash BudgetingJordana Krull owns The Eatery in Miami, Florida, The Eatery is an affordable restaurant located near tourist attractions. Jordana accepts cash and checks. Checks are deposited immediately. The bank charges $$0\mathrm{.}50$ per check; the amount per check averages $$65.$ Bad checks that Jordana cannot collect make up $2$ persent of check revenue.During a typical month, The Fatery has sales of $$75,000.$ About $75$ percent are cash sales.Estimated sales for the next three months are as follows:July$$60,000$August$75,000$September$80,000$Jordana thinks that it may be time to refuse to accept checks and to start accepting credit cards.She is negotiating with a crodit card processing service that will allow her to accept all major credit cards. She would start the new policy on May $1.$ Jordana estimates that with the drop in sales from the no$-$checks policy and the increase in sales from the acceptance of credit cards, the net increase in sales will be $20$ percent. The credit card processing service will charge no setup fee, however the following fees and conditions apply: Monthly gatcway and statement fee totaling $$19,$ paid on the first day of the month. Discount fec of $2$ percent of the total sale. This is not paid separately, instead, the amount that Jordana receives from each credit sale is reduced by $2$ percent. For example, on a credit card sale of $$150,$ the processing company would take $$3$ and remit a net amount of $$147$ to Jordana s account. Transaction fee of $$0\mathrm{.}25$ per transaction paid at the time of the transaction.There will be a two$-$day delay bereen the date of the transaction and the date on which the net amount will be deposited into Jordana's account. On average, $94$ percent of a month's net credit card sales will be deposited into her account that month. The remaining $6$ percent will be deposited the next month.If Jordana adds credit cards, she believes that cash sales will average just $5$ percent of total sales, and that the average credit card transaction will be $550.$Required:Prepare a schedule of cash reccipts for August and September under the current policy of accepting checks$\mathrm{.}2.$ Assuming that Jordana decides to accept credit cards.a$.$ Calculate revised total sales, cash sales, and credit card sales by month for August and September.b$.$ Calculate the total estimated credit card transactions for August and September$\mathrm{.}3\mathrm{.}1$Prepare a schedule of cash reccipts for August and September that incorporates the changes in policy.