I need some help answering this question for a business class i'm taking. Please!

Bluffton Pharmacy Part 2 Now should the owners of a small Pharmacy Create a Cash Flow Forecast for their Business. It has been a little more than two years since Angela Crawford and Martin Rodriguez purchased the Bluffton Pharmacy from Frank White, the previous owner and founder, who had started the pharmacy in 1969. Although Crawford and Rodriguez have prepared budgets for Bluffton Pharmacy and have analyzed their financial statements using ratio analysis , they have not created a cash flow forecast. During a recent meeting, their banker explained the importance of a reliable cash flow forecast, telling them that banks traditionally are \"cash flow lenders.\" Bankers appreciate strong balance sheets and income statements, but they are most interested in a company's cash flow because they know that positive cash flow is required to pay back a loan. Crawford and Rodriguez expect sales to increase 4.5 percent next year to $2,504,368. Credit sales account for 79 percent of total sales, and the company's collection pattern for credit sales is 11 percent in the same month in which the sale is generated, 63.5 percent in the first month after the sale is generated, and 22 percent in the second month after the sale is generated. The pharmacy's cost of goods sold is 77.4 percent, and vendors grant \"net 30\" credit terms, which means that the pharmacy pays for the goods it purchases every month in the following month. Crawford and Rodriguez have been working with their accountant to develop the following estimates for their sales and expenses for the upcoming year: Actual sales for the last two months, November and December, were $272,357 and $315,458. The company's cash balance as of January 1 is $74,473. The interest rate on Bluffton Pharmacy's current line of credit is 8.25 percent, and whatever the pharmacy borrows must be repaid the following month (with interest), even if it must borrow again in that month. The entrepreneurs have established a minimum cash balance of $15,000. Assignments LP2 Assignment: Case 7 - Bluffton Pharmacy This assignment will assess the competency 2. Apply cash flow management concepts that relate to small business operations. (Ch. 15) Directions: Read Case 7 - Bluffton Pharmacy on page 841 of the textbook. Answer the following questions: Develop a monthly cash budget for Bluffton Pharmacy for the upcoming year. What recommendations can you offer Angela Crawford and Martin Rodriguez to improve their pharmacy's cash flow? If you were Bluffton Pharmacy's banker, would you be comfortable extending a line of credit to the pharmacy? Explain. Write a 1-2 page paper detailing the above questions, and be sure to cite your references. Submit this assignment to your instructor via the dropbox \"LP2 Assignment: Case 7 - Bluffton Pharmacy.\" This assignment is worth 50 points. Jan Sales Feb Mar $230,402 $237,915 $215,376 105 55 60 Rent 3,083 3,083 3,083 Utilities 1,049 1,083 980 Advertising 1,150 1,188 1,075 Other cash reciepts Insurance Salaries, wages and benefits -- 2,700 27,404 27,515 27,182 Computer System and E-commerce 1,042 1,042 1,042 Repairs and maintenance 2,000 2,000 2,000 Travel 150 Professional fees Sipplies Loan Payments Other 644 665 602 2,073 2,073 2,073 50 50 50 April May June July Aug Sept $177,810 $175,306 $172,801 $162,784 $167,793 $197,845 75 85 55 65 60 65 3,083 3,083 3,083 3,083 3,083 3,083 809 798 787 741 764 901 888 875 863 813 838 988 2,700 2,700 26,627 26,590 26,553 26,405 26,479 26,923 1,042 1,042 1,042 1,042 1,042 1,042 2,000 2,000 2,000 2,000 2,000 2,000 5,000 200 497 490 483 455 469 553 2,073 2,073 2,073 2,073 2,073 2,073 40 40 40 40 45 50 Oct Nov Dec $247,932 $255,445 $262,959 85 95 110 3,083 3,083 3,083 1,129 1,163 1,197 1,238 1,275 1,313 2,700 27,663 27,774 27,885 1,042 1,042 1,042 2,000 2,000 2,000 3,900 693 714 735 2,073 2,073 2,073 50 50 50