Cupcakes for All Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Cash Sales and Collections 118,000 125,000 126,000 132,000 501,000 Less Payments: Purchases 67,000 68,000 68,000 70.500 273,500 Wages 15,000 15,000 15,500 16,000 61,500 Rent 2,200 2,200 2,200 2,200 8,800 Utilities 660 500 500 660 2,320 Other Expenses 10,500 6,700 8,800 7,950 33,950 Taxes 7,500 7,500 7,600 7,700 30.300 Total Payments 102.860 99,900 102,600 105,010 410,370 Cash gain or loss) 15,140 25,100 23,400 26,990 90.630 Although carefully thought through and researched, the actual sales and expenses for Cupcakes for All came out slightly different than the projected cash budget. The following numbers were the primary culprits: Cash sales and collections for fourth quarter: $89,000 (instead of $132,000) Purchases for the third quarter: $75,500 (instead of $68,000); fourth quarter: $77,000 (instead of $70,500) Other expenses for fourth quarter: $18,000 (instead of $7,950). Activity Questions: Discuss the potential causes for these discrepancies - be creative but practical and logical in your ideas. In an independent, small sole proprietorship like Cupcakes for All, which of the four primary sources of funds will most likely provide the firm's financing? During particularly Cupcakes for All Cash Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total Cash Sales and Collections 118,000 125,000 126,000 132,000 501,000 Less Payments: Purchases 67,000 68,000 68,000 70.500 273,500 Wages 15,000 15,000 15,500 16,000 61,500 Rent 2,200 2,200 2,200 2,200 8,800 Utilities 660 500 500 660 2,320 Other Expenses 10,500 6,700 8,800 7,950 33,950 Taxes 7,500 7,500 7,600 7,700 30.300 Total Payments 102.860 99,900 102,600 105,010 410,370 Cash gain or loss) 15,140 25,100 23,400 26,990 90.630 Although carefully thought through and researched, the actual sales and expenses for Cupcakes for All came out slightly different than the projected cash budget. The following numbers were the primary culprits: Cash sales and collections for fourth quarter: $89,000 (instead of $132,000) Purchases for the third quarter: $75,500 (instead of $68,000); fourth quarter: $77,000 (instead of $70,500) Other expenses for fourth quarter: $18,000 (instead of $7,950). Activity Questions: Discuss the potential causes for these discrepancies - be creative but practical and logical in your ideas. In an independent, small sole proprietorship like Cupcakes for All, which of the four primary sources of funds will most likely provide the firm's financing? During particularly