I need help with this budgeting question right now.

Question 23 25 pts Problem 3 (18 points) Ossivox Corp. (OC), a retailer of 3-D projection equipment, is preparing its second quarter 2012 cash budget. OC expects sales in April, May, June and July to be $120,000, $145,000, $190,000 and $200,000 respectively. 20% of OCs sales are for cash and the rest are on credit. OC expects to collect 80% of its credit sales in the month following the sales and 18% in the second month following the sales. 2% of credit sales are expected to become uncollectible. Ossivox has no beginning Accounts Receivable, as it sold its receivables to a financing company at the end of March. Ossivox Corp. has a policy of maintaining inventory levels at the end of each month equal to 50% of the following month's Cost of Goods Sold. OC enjoys a 100% markup on its inventory when selling to customers. When OC purchases inventoryfrom suppliers it pays for half of the inventory purchased in the month ofthe purchase and the other half in the following month. The company has beginning Accounts Payable of $32,000 on April 1, representing the unpaid half of March's purchases from suppliers. OC began the month of April with $60,000 in cash and $30,000 of inventory. OC has cash Operating Expenses totaling $25,000 in each month. Required: a. Prepare a schedule of expected cash collections for the second quarter of 2012 for Ossivox Corp. b. Prepare a schedule of expected payments to suppliers for OC for the same period. c. Assume that OC does any necessary borrowing at the beginning of the month, and any repayments are made at the end of the month. The monthly interest rate on borrowing is 1%. If OC has a policy of maintaining at least a $50,000 cash balance at the end of each month, will the company need to borrow any cash during the quarter? Ifso, how much and during which month(s)? Upload Choose a File