Elon Co's September balance sheet contains the following information: Management has designated $61,000 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows a. Sales revenues of $620,000,$735,000, and $545,000 are expected for October, November, and December, respectively All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1s uncollectible, Which is set up as an allowance c. Cost of goods sold is 60 s, of sales revenues. d. Management's target ending balance d merchandise inventory is 10% of the current month's budgeted cost of goods soid e. All accounts poyable for inventory are paid in the month of purchase. f. Other monthly expenses are $82,500, which includes $5,750 of depreciation and 73,250 of bad debt expense 9 In the event of a shortfall, the company borrows money in contrast, in the event of excess cash, the company invests in short:term investments. Borrowings and investments are ossumed to be made ot the end of a month in increments of $10,400 h. Interest on borrowings is 10N per year, payable every quarter, on the accumulated amount of the loan, similarly, interest earned on investments is as per year on the occumulated investments and is received every quarter investments can be matured and the principal amount redeemed in June or December of a year. Assignment 4: Cash Budget (Module 3, Ch.7) (i) 2. Prepare the cash budgets for October and November, including the effects of financing (borrowing or investing) Interest is earned or paid quarterly. (Any "Repayments" and "Interest" should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Required: 1. Prepare a merchandise purchases budget for October and November