MODULE 6: Larry and Janice have retained an accountant to help them understand their cash position in their projected first year of operations (they plan to open their business on January 1, 2021). The accountant has reviewed their latest projections for 2021 and since they were planning to go ahead with their business he was keen to help them prepare a cash budget for the first 6 months of 2021. She advised the Martins that it was imperative that they preserve liquidity in this first phase of their business. Several assumptions need to be reflected in the cash budget. Revenues are estimate to be $30,000 per month; it is estimated that 40% of the customers would pay immediately while 60% would pay up between 30 and 60 days. Their COGS is estimated to be $11,000 per month and the accountant suggested that 50% of their COGS should be paid at the time of purchase with the remaining 50% delayed until the next month. Salaries at $9,000 per month, Lease Costs of $1,200 per month, Utilities of $300 per month, Office Supplies of $100 per month and Advertising of $200 per month need to be accounted for and paid out in each month. Federal Tax installments of $4,000 in March and $5,000 in June also need to be recorded.