E' inau u' e' muuunu"at wug runu tweuraaacs v, Other operating expenses are expected to be $171,000 per quarter and are wmpuaythwau ter endine the process of preparing the cash budget for the business for ending December 31, 2016. Extracts from the sales and purchases budgets are as follows: settled monthly Month 2016 Cash Sales Sales (vi) The management of Long Pond has negotiated with a tenant to rent office space On to her beginning November 1. The rental is $540,000 per anum The first month's rent along with one month's safety deposit is expected to be collected on November 1. Thereafter, monthly rental income becomes due at the beginning of each month. August $121,000 S480,000 $390,000 $95,500$600,000 360 November December (ix) Wages and salaries are expected to be $2,880,000 per annum and will be paid 750 (A) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the crecit terms 5/30, n90 (x) At the recently concluded negotiations between management and the union 60% in the month of sale representing the workers it was agreed that Long Pond Electronics should make retroactive payments in the amount of $1,500,000 to employees. The payment is being settled in sour equal tranches. The third payment becomes due and payable in October of 2016 30% in the first month following the sale 10% in the second month following the sale ii Accounts payable are settled as follows, in accordance with the credit terms 3/30, n60 (xi The cash balance on September 30, 2016 is expected to be an overdraft of 80% in the month in which the inventory is purchased 20% in the following month $155,000 iii During December, the management of Long Pond Electronics expects to sell an old motor vehicle that cost $500,000 at a gain of $45,000. Accumulated Required depreciation on this motor vehicle at that time is expected to be $345,000. The employee will be allowed to pay a deposit equal to 65% of the selling price December and the balance settled in two equal amounts in January&February of 2017 in a) Prepare a schedule of budgeted cash collections for sales for each of the months (b) Prepare a schedule of expected cash disbursements for purchases for the (c) Prepare a cash budget, with a total coumn, for the quarter ending December 31 Companies in the industry in which Long Pond Electronics operates are required October to December, 2016. quarter to December 31, 2016. 2016, showing the receipts and payments for each month (iv) Furniture and Fixtures, which is estimated to cost $240,7s0, will be purchased for cash in December. A long-term bond purchased by Long Pond Electronics with a face value of $500,000 will mature on October 20, 2016. In order to meet the financial obligations of the business, management has decided to liquidate the investment upon maturity. On that date qarter interest computed at a rate of 6( arrum is also expected to be collected (v) to maintain a minimum cash balance of $145,000 each month. Based on the budget prepared, will the business be meeting this requirement? Suggest three 3) possible steps (other than borrouing), that may be taken by the management of the company to improve the organization's cash flow (vi) Fixed operating expenses which accrue evenly throughout the year, au estimated to be $2,016,000 per annum, including depreciation on non-currer assets of $42,000 per montH and are settled monthly