I need help with question #3 using the Excel format below

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Colorado Adventures, Inc., sells snowsport equipment. Maya Grenier is the controller for Colorado Adventures and put together the below initial cash budget for the fourth quarter of the year. Colorado Adventures, Inc. Cash Budget For the Quarter Ended December 31 The company gencrally borrows moncy during this quarter to support peak sales. The above eash budget was based on assembling the follosing data: a. Budgeted monthly income stasements for Ostober-January are: "Includes $10,000 of depreciation each month. b. Each month, 20 pereent of sales are for cash and 80 pereent are on credit. The collection patterm for credit sales is 10 pereent collected in the month of sale, 70 percent in the first month following the month of sale, and 20 pereent in the sccond month following the month of sale. August's sales totaled $100,000, and September's sales totaled $150,000. c. Inventory purchases are on account. Of those purchases, 50 pereent are paid in the month of purchase. The remaining 30 percent is paid in the following month. Accounts payable at September 30 for ieventory purchases during September total $63,000. d. The merchandise inventory on October I is $42,000. The desired ending inventory for each month is 20 percent of the cost of the merchandise to be sold the next month. c. Dividends of $24,$00 will be declared and paid in October. f. Land costing $8,000 will be purchased for eash in November. g. The eash balance on O etober 1 is $26,000. The company wants to have an ending cash balanke of a least $20,000. If a cash shortage develops, sufficient eash is borrowed to cover the shortage and provide the desired ending balance. Any eash borrowed must be borrowed in increments of $500 at the beginning of each month. The interest rate on these loans is 1 pereent per month (simple interest-that is, assume no compounding). The company woald, as possible given minimum requirement, repay the loan plus aceumulated interest at the cnd of the quarter. Colondo Adventures" president wants to know bow reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. She has asked Maya and her staff to revise the cash collection and ending inventory assumptions as follows: Colorado Adventures' president wants to know how reducing inventory levels and collecting accounts receivable sooner will impact the cash budget. She has asked Maya and her staff to revise the cash collection and ending inventory assumptions as follows: a. Credit sales still account for 80 percent of total sales. However, the collection period for October, November, and December credit sales is 25 percent collected in the month of sale, 65 percent collected in the month following sale, and 10 percent in the second month following sale. (Any credit sales from August and September collected during the fourth quarter use the collection percentages noted originally in the previous section.) b. The company maintains its ending inventory levels for October, November, and December at 15 percent of the cost of merchandise to be sold in the following month. (The merchandise inventory at October 1 remains $42,000 and accounts payable for inventory purchases at September 30 remains $63,000 as noted originally in the previous section.) 2 Prepare the merchandise purchase budget for October, November, and December and for the quarter in total. \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Merchandise Purchases Budget } \\ \hline & October & November & December & Quarter \\ \hline Budgeted cost of goods sold & $210,000 & $315,000 & $175,000 & $700,000 \\ \hline Add : Desired Ending inventory & $63,000 & $35,000 & $28,000 & $28,000 \\ \hline Total needs & $273,000 & $350,000 & $203,000 & $728,000 \\ \hline Less : Beginning merchandise inventory & (42,000) & (63,000) & (35,000) & (42,000) \\ \hline Required purchases & $231,000 & $287,000 & $168,000 & $686,000 \\ \hline \end{tabular} Explanation : Desired ending inventory for October =$315,00020%=$63,000 Desired ending inventory for November =$175,00020%=$35,000 Desired ending inventory for December =$140,00020%=$28,000 Ending inventory of December is the ending inventory for Quarter Beginning inventory for October is the beginning inventory of Quarter. Required (Part 1): Your group members are part of the Controller's office. Using the new assumptions, Maya has asked you to prepare the below. Prepare these items using the Excel spreadsheet provided as part of the assignment. For the budgets, your task is to enter formulas (cell references) to calculate required numbers ("Requirements 14 "worksheet). For the cash budget financing section only, if there are any borrowings, repayments, and/or interest, type out supporting calculations in the related section noted at the bottom of the worksheet, putting the final number in its own cell. Then, reference the cell in the cash budget financing section. If the item is zero, leave the space blank. Do NOT modify the spreadsheet format (for example, do not add rows or columns, change spacing or margins, change provided data, etc...). 1. Prepare the schedule of expected cash collections for October, November, and December and for the quarter in total. 2. Prepare the merchandise purchases budget for October, November, and December and for the quarter in total. 3. Prepare the schedule of expected cash disbursements for merchandise purchases for October, November, and December and for the quarter in total. 4. Prepare the cash budget for October, November, and December, and for the quarter in total. 5. Compare the original cash budget to your revised cash budget. To better prepare Maya for her meeting with the president, discuss (explain) how the revised collection and inventory assumptions affect the cash budget. That is, not only note the changes but also discuss why changes in accounts receivables collections and inventory levels have an impact. Type in your response on the "Requirement 5" worksheet. Requirement 3: Schedule of Expected Cash Disbursements