Cosimo Rossi runs a small manufacturing business in Winnellie and has asked for help preparing a cash budget for July and August. He estimated that the cash balance at the end of June would be $105,000. He has provided you with a breakdown of the revenue figures for May and June and an estimate for July and August. July Cash Sales Credit Sales Total May $ 110,250 157,500 June $ 106,750 192,500 $ 126,000 227,500 August $ 105,000 140,000 $ 267,750 $ 299,250 $ 353,500 $ 245,000 He has found that his credit customers generally pay their accounts in the three months after the sale. 60 percent is collected in the month of sale, 35 percent in the following month and the balance the month after that. Cosimo has budgeted for selling and administrative expenses on a monthly basis at $154,000 a month. He will be buying and installing new equipment for $175,000. There is an initial outlay of $35,000 in July with the remainder due after installation in October. With the need to cover unexpected expenses Cosimo tries to keep a minimum cash balance of $ 105,000. He anticipates that during the dry season there will be an increase in sales and so he will need to build up his inventory levels to meet the demand. He has ordered new stock at a cost of $105,000 which will be delivered in June with settlement paid in July. Required a. Show in a table how much credit customers pay in July and August. (3 marks) b. Create a cash budget for July and August. (10 marks) c. Write notes for Cosimo showing his cash position over July and August and provide him with advice about his financing requirements if there is a cash shortfall or investment opportunities if there is a surplus