Happy Pets is a veterinary clinic operating in Rydal mere. Recently John, the manager of the clinic, has been concerned about cash flow shortages in 2017, which arose quite unexpectedly in the last three months of the 2016. The clinic bank account want into overdraft and incurred interest charges. Cash balance at beginning of January 2017 is negative $200,000 (bank overdraft). John believes that the main source of the cash flow difficulties is a lack of attention to outstanding client accounts and the practice of purchasing expensive veterinary supplies in large quantities at irregular intervals. John has asked you to help design a spreadsheet to help with planning for client consultations, purchases of supplies, cash shortages and cash surpluses for next year. The following data are available: Revenue is a follows: During the past year, 50 per cent of consultation revenue was collected in the month of the veterinary visit. 20 percent in the following month. 20 per cent in the second month, and 10 per cent, 10 per cent and 10 per cent respectively. The cost of veterinary supplies was $75,000 in December and is budgeted as $125,000 in February. Half of the suppliers' accounts are paid in the month they are incurred and half in the following month. Salaries of $100,000 Required: Prepare a cash budget for the first quarter of 2017 (January to March). What further steps could John take to help ensure that the cash balance of the clinic remains positive? In your answer, Consider ways in which budgeting may assist