in a schedule form

PROBLEM 9-23 Schedulo of Expectod Cash Colloctions; Cash Budgot (LO2, LO8) Ilerbal Care Corp., at distrihutor on lierb-bised smimsereens, is ready 10 hegin its third quarter, in which peak sales ocear. The company has requested a $40,000,90-chy loan from is bank to lielp, mect cash requiryments duriag lie quater. Since Herbal Corv has experienced diffeculty in paying ofr its loans in the past, the loim oflicer at lhe hank has asked the conipany to prepare a eash budget for the quanter. In response to ithis request, the following daa liave becen issembled: a. On Jily I, the beginning of the thard quarter, the company will hirve a cash balance of $44,500. b. Actual sales for the las two months amd bedgeted sales for the third quarter follow (all sales are on accoumi): Past experience shews that 25% of a ltenth's sales are collected in the nonth of sale, 70% in the month following sale, and 3% in fle seenenl monils following sale. The remainder is imenollectible, c. Budgeled merelandise parelaises and budgeted expenses for the third quarier are given helow: able for merelamdise purchases on June 30, which will bo paid during July, total S180,000. d. Lequipasent costing $10,000 will be purchascul for cash daring July. c. Ini preparing the cash badgel, asseme iltat the $40,000 hoam will lie made in July and repaid in September, lateresl on the loan will toral $1,200. Requined: 1. Prepare a schedule of expected caxh colleetions for luly, August, and September and for the quarter in total. 2. Prepare a cash badgel, hy imonili sud in total, for iliv thind quanter. 3. It the company needs a minimum cash balance of $20.0001 tin start each monih, cau the foan he ispaid as planned? Eixplain