Need to calculate short term financial plan , including cash collection, cash in , cash out , cash payable , net cash flow etc

. Expected revenues for the first two years are as follows. o. Sales for the 1st quarter of Year 3 are projected at $1,150,000 ( 1 150 ) Year 1 ('000s) Year 2 ('000s) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20.00 60.00 150.00 250.00 375.00 550.00 750.00 975.00 6 0 1 Accounts receivable at the beginning of this expansion are $0. A R o Collection period = 30 days . Accounts payable at the beginning of the expansion are $0. AP The Company quarterly purchases from suppliers = 30% of the next quarter's forecasted sales. o Suppliers are paid on average in 60 days. . General and administrative expenses (salaries, insurance, IT, utilities etc.) are estimated to be $7,500 in the 1st quarter of Year 1 and 15% of sales thereafter. Sales salaries and commissions and advertising are estimated to be 12.5% of sales. . The company expects capital outlays in both Year 1 - Q1 of $175,000 and Year 1- Q3 of $175,000. . The expansion will start with an initial cash loan from the parent company of $350,000. Interest on this loan is $7,000 per quarter. The $350,000 will be paid back during Year 2 = Q4. . Interest on any additional short-term borrowing is expected to be 3% per quarter. The Company wishes to maintain a $175,000 minimum balance at all times to best manage its working capital and any unexpected commitments. Question #1 - (10 marks) Using the above information complete Appendix A - BikesAreBetter Inc. Pro Forma Income Statement Question #2 - (20 marks) Using the following projections, and the template in Appendix-B, build a Cash Budget for the expansi Question #3 - (10 marks) Based on your cash budget in Question #2 use Appendix C to create a Short-Term Financing Plan. Question #4 - (10 marks) a) Based on your completed Appendices A & B explain the following statement (50-100 words). "Managers should use cash flows instead of net incomes when making business/project decisions b) Based on Questions #1-#3 does this look like a viable expansion? Explain (200-300 words)