In chapter 4 question 12. Can someone walk me through this on how to solve and explain this problem: Grantsville is a medium-sized midwestern town, not quite rural, not quite urban, and not quite a willing participant in the twenty-first century. As the new clerk-treasurer, you are eager to bring new aggressiveness to the city administration, so long as none of the Old Guard gets mad. You suspect that a non-irritating first step would be the development of a cash plan and short-term investment strategy for the city. You further believe that an appropriate start would be with the four largest funds in the city financial structure: general, parks and recreation, motor vehicle, and cumulative capital. The following data emerge from your search. Fund Balances for January 1 General fund $620,860 Parks and recreation $ 62,968 Motor vehicle $102,015 Cumulative capital $639,611 Revenue Estimates Property tax: Collections are received by the city on May 1 and November 1. Because of a discount for early payment, five-eighths of the collections come in the first installment. Delinquency has historically been about 2 percent of the levy. Levy: General fund $2,985,200 Parks and recreation $ 718,300 Cumulative capital $ 385,400 Parking meters (general fund): Revenues run about $6,000 per month, except in September and October (football season), when they run about 5 percent higher; December, when they are about 10 percent higher; and July, when they are about 15 percent lower. Building permits, inspection fees (general fund): Estimated at $400,000 for the year. The engineer's office transmits collections to you at the end of each quarter. You estimate the seasonal collections as QI, 85,000; QII, 105,000; QIII, 125,000; QIV, 85,000. Traffic fines (half to general fund, half to motor vehicle): Estimated at $6,500 per month. The court remits at the end of each month. Swimming pool admissions (parks and recreation): Estimates are based on prior years. May $ 800.00 June $ 950.00 July $1,750.00 August $2,500.00 September $ 750.00 Community auditorium rental (parks and recreation): Estimates are based on prior year. July 4 Freedom Celebration $ 800.00 Labor Day Customs Show $1,500.00 Casual rentals (square dances, Rotary, etc.) $ 150.00/month State shared tax (motor vehicles): The state department of revenue provides data. March 31 $114,000 June 30 $125,000 September 30 $115,000 December 31 $113,000 Expenditures, as Appropriated by City Council Payrolls: Paydays are every other week. The first payday is January 7. General fund $95,000 biweekly Parks and recreation $15,000 Also, the following temporary expenses are paid biweekly from May 15 to September 10: Summer lifeguards, playground supervisors $20,000 biweekly Motor vehicle fund $10,200 biweekly Other regular expenditures: Checks to suppliers and other nonemployees are issued only on alternate Thursdays. The first such date is January 13. General fund $25,000/disbursement Parks and recreation $ 4,000/disbursement Additional summer payments (May 10-September 15) $ 3,000/disbursement Motor vehicle $ 7,000/disbursement Cumulative capital Bond service due May 15 ($150,000) and November 15 ($125,000) Special expenditures General fund: Two police cars at $14,500 to be paid for October 1 Motor vehicle fund: Dump truck with sand-salt distributor and snowplow at $34,000 to be paid for October 1 From these data, prepare a complete cash budget for the year and include end-of-year balances. Estimate what amounts are available for investment and what fund shortages will occur. Identify any management strategies to prevent the fund shortages, if possible.