Loblaw Manufacturing has asked you to create a cash budget in order to determine its borrowing needs for the June to October

period. You have gathered the following information.

April and May sales were $$327,031$ and $$383,906,$ respectively. The firm collects $20\%$ of its sales during the month, $65\%$ the

following month, and $15\%$ two months after the sale. Each month it purchases inventory equal to $55\%$ of the next month$$s expected

sales. The company pays for $40\%$ of its inventory purchases in the same month and $60\%$ in the following month. However, the

firm$$s suppliers give it a $2\%$ discount if it pays during the same month as the purchase. A minimum cash balance of $$25,000$

must be maintained each month, and the firm pays $4\%$ annually for short$-$term borrowing from its bank.

Create a cash budget for June to October $2021.$ The cash budget should account for short$-$term borrowing and payback of outstanding

loans as well as the interest expense. The firm ended May with a $$30,000$ unadjusted cash balance.

b$..$ Bob Loblaw, the president, is considering stretching out its inventory payments. He believes that it may be less expensive

to borrow from suppliers than from the bank. He has asked you to use the Scenario Manager to see what the total interest cost

for this time period would be if the company paid for $0\%,10\%,30\%,$ or $40\%$ of its inventory purchases in the same month. The

remainder would be paid in the following month. Create a scenario summary, and describe whether the results support Bob$$s

beliefs.