GOD BLESSES YOU. PROBLEM 2: Cash Budget Prepare and Evaluate a Cash Budget for the Months of October, November, and December based on the information shown below. 1. Determine the Monthly Net Cash Flow. 2. Determine if the firm would have a required financing (deficit) or excess cash balance (surplus) for each periocd Month August September October November December Sales $3,000,000 $3,500,000 $4,500,000 $2,000,000 $1,000,000 $500,000 $1,500,000 750,000 $2,000,000 $1,000,000 Purchases Additional Data Please!!, pay attention to the cash expenses and non-cash expenses, and their implication when computing the Cash Budget: I. The firm collects 60% of sales for cash, and 40% one month later based on past history. 2. Interest Income of $50,000 on Marketable Securities will be received in December 3. The firm pays cash for 40% of its purchases (same month). 4. The firm pays for 60% of its purchases the following month. 5. Salaries and Wages amount to 15% of the preceding months sales 6. Sales commissions amount to 2% of the preceding months sales 7. Lease Payments of $100,000 must be made each month in cash 8. A principal and interest payment on an Outstanding loan is due in December of $150,000 9. The firm will pay cash dividends of $50,000 at the end of December 10. Fixed assets costing $600,000 will be purchased in cash in December. 11. Depreciation expense is expected to be $45,000 each month 12. The firm has a beginning cash balance in October of $100,000 13. The firm maintains a minimum cash balance of $200,000 each month