DC Products is a wholesale distributor of industrial cleaning products. The company treasurer has assembled the following information to assist in preparing a detailed cash budget to support the company's loan application for shortterm financing with a local bank: a. Budgeted sales and merchandise purchases for the year 2024, as well as actual sales and purchases for the last quarter of 2023, are as follows: Merchandise Sales Purchases 2023: Fourthquarter actual $240,000 $151,200 2024: Firstquarter estimated 360,000 223,200 Second-quarter estimated 480,000 297,600 Third-quarter estimated 600,000 366,000 Fourthquarter estimated 240,000 151,200 b. The company normally collects 65% ofa quarter's sales before the quarter ends and another 33% in the following quarter. The remainder are uncollectible. This pattern of collections is now being experienced in the 2023 fourthquarter actual data. c. 80% of a quarter's merchandise purchases are paid for within the quarter. The remainder are paid in the following quarter. d. Operating expenses for the year 2024 are budgeted quarterly at $60,000 plus 15% of sales. Of the fixed amount, $24,000 each quarter is depreciation. e. The company will pay $12,000 in dividends each quarter. f. Equipment purchases of $90,480 will be made in the second quarter, and purchases of $57,600 will be made in the third quarter. These purchases will be for cash. g. The cash account contained $12,000 at the end of 2023. The treasurer feels that this represents a minimum balance that must be maintained. h. Any borrowing will take place at the beginning of a quarter, and any repayments will be made at the end ofa quarter at an annual interest rate of10%. Interest is paid only when the principal is repaid. All borrowings and all repayments of the principal must be in round $1,000 amounts. Interest payments can be in any amount. (Compute interest on whole months, e.g., 1/12, 2/12.) i. At present, the company has no loans outstanding. Required: 1. Prepare the following by quarter and in total for the year 2024: a. A schedule of expected cash collections. b. A schedule of budgeted cash disbursements for merchandise purchases. 2023F0urth-quarter purchases 2024Firstquarter purchases 2024Second-quarter purchases 2024Third-quarter purchases 2024Fourth-quarter purchases Total cash payments 2. Compute the expected cash payments for operating expenses, by quarter and in total, for the year 2024. 3. Prepare a cash budget, by quarter and in total, for the year 2024. In your budget, clearly show the quarter(s) in which borrowing will be necessary and the quarter(s) in which repayments can be made, as requested by the company's bank. (Roundup "Borrowing" and "Repayments" answers to the nearest whole dollar amount. Any "Repayments", "Interest" and "Deficiency of cash" should be indicated by a minus sign.) DC Products Cash Budget for year 2024 First Second Third Fourth Year Total cash available 0 0 0 0 0 Deduct: Disbursements: Total disbursements 0 0 0 0 Excess (deficiency) of receipts over disbursements Financing: Total financing 0 0 0 0 04. Consider the cash balance at the end of the fourth quarter as calculated in Requirement (3). Recalculate the ending balance if repayment of principal can be in round $100 amounts. (Do not round intermediate calculations. Round your answer to 2 decimal places.) _:|