Month August September October November December Sales $3,800,000 S3,100,000 $1,600,000 $1,150,000 $1,200,000 Purchases $3,200,000 $1,700,000 S 975,000 $ 700,000 $ 700,000 Additional Data: Please!!!, pay attention to the cash expenses and non-cash expenses, and their implication when computing the Cash Budget: 1. The firm collects 60% of sales for cash; and 40% one month later based on past history, 2. Interest Income of $80,000 on Marketable Securities will be received in December 3. The firm will sell a machinery for cash in S575,000 in October 4. The firm pays cash for 60% of its purchases (same month). 5. The firm pays for 40% of its purchases the following month. 6. Salaries and Wages amount to 15% of the preceding months sales 7. Sales commissions paid amount to 10% of the preceding months sales 8. Lease Payments of $275,000 must be made each month 9. A principal and interest payment on an Outstanding loan is due in December of $300,000 10. The firm will pay cash dividends of $150,000 at the end of December 11. Fixed assets costing $700,000 in cash will be purchased in November 12. Depreciation expense is expected to be $50,000 each month. 13. The firm has a beginning cash balance in October of $300,000. 14. The firm maintains a minimum cash balance of $300,000 each month. Required: Prepare and Evaluate a Cash Budget for the Months of October November, and December based on the information shown below, and determine if the firm would have a required financing (deficit) or excess cash balance (surplus) for each period. Then answer the questions. I PREPARATION OF CASH BUDGET (Value: 34 points: 53 issues @.6415each) AUGUST SEPT. OCTOBER NOVEMBER DECEMBER I PREPARATION OF CASH BUDGET (Value: 34 points: 53 issues @.6415each) AUGUST SEPT. OCTOBER NOVEMBER DECEMBER