Data chose from Emerald Corp.:

Month Sales Purchases

September $ $545,000$ $ $420,000$

October $ $570,000$ $ $375,000$

November $ $580,000$ $ $350,000$

December $ $600,000$ $ $400,000$

Additional Data:

Please, pay attention to the cash expenses and non$-$cash expenses, and their implication when computing the Cash Budget:

$1.$ The firm collects $65\%$ of sales for cash same month, and $35\%$ one month later based on history.

$2.$ Interest Income of $$75,000$ on Marketable Securities investments will be received in December.

$3.$ The firm will sell machinery for cash for $$450,000$ in October.

$4.$ The firm will pay in cash for $75\%$ of its purchases $($same month$)$ and $25\%$ of its purchases in cash the following month.

$5.$ Salaries and Wages amount to $20\%$ of the preceding month$$s sales

$6.$ Sales commissions paid amount to $10\%$ of the preceding month$$s sales.

$7.$ Lease Payments of $$15,000$ must be made each month.

$8.$ A principal and interest payment on an Outstanding loan is due in November for $$30,000$

$9.$ The firm will pay cash dividends of $$50,000$ at the end of October.

$10.$ Fixed assets costing $$150,000$ in cash will be purchased in December.

$11.$ Depreciation expense is expected to be $$100,000$ each month.

$12.$ The firm has a beginning cash balance in October of $$300,000.$

$13.$ The firm wishes to maintain a monthly cash balance of $$300,000.$

Required:

Prepare and Evaluate a Cash Budget for the Months of October, November, and December based on the information shown

below, and determine if the firm would have a required financing $($deficit$)$ or excess cash balance $($surplus$)$ for each period.