Part A: 20 marks Please use the following information to create a quarterly cash budget in proper form. As part of your analysis, assume a minimum cash balance of $35,000. Any shortfall in cash must be addressed using a loan. Assume an interest rate of 1.5% each quarter. Interest in the current quarter should be calculated using the ending balance from the previous quarter. The Company will use any excess cash to repay the loan in full in order to avoid unnecessary interest charges. 01 (12 (13 (14 Total Collections from customers 800,000 700,000 |:| 915,400 2,415,400 Disbursements Direct materials 350,000 230,000 200,000 230,000 1,010,000 Payroll 312,000 242,000 22 5,000 23 1,639 1,011,689 Other costs 275,000 253,000 252,000 259,570 ' 1,055,570 Income taxes Ofce equipment purchase 35,030 35,030 Other information: Other costs noted in the table above includes depreciation expense of $30,000 per quarter Previous year data: Operating income 304,944 Depreciation 120,000 CCA 150.000 Tax rate 25% Assume the income tax expense calculated using the prior year data is equal to the amount payable in the current year. Furthermore, the amount payable in the rst quarter should be $50,000 with the remainder evenly distributed across the next three quarters { 02, C13 and 04). Please use the information below to calculate the Collections from customers for 03 (Jul to Sep} Sales Information May Jun Jul Aug Sep Month details: Credit sales, 9054. 255,154 300,000 235,000 235,000 234,034 Cash sales, 10% 52,515 30,000 31,591 3 1,552 31,555 Total Sales $307,680 $330,000 $316,691 $316,662 $315,649 Note: Collection is 50% of credit sales the month after the sale and the remaining 50% two months after the sale