PART TWO Cash flow and Financing Before leaving, Steevan Harrland, Jr., advised his dad that there also is a need for better forecasting regarding the company's cash inflows and outflows. After a senes of questions, you determined that (1) the staff had not prepared a cash budget for several quarters and (2) is not up to date on the company's payables and receivables. You are going to prepare a forecasted income statement and a forecasted cash budget for the fourth quarter. Pertinent information needed has been collected and is outlined below. Pertinent Information: The business manager/accountant and Mr. Harrland, Sr., provided projections pertaining to the 4" quarter (October through December 2020) and other pertinent information outlined below: 1. Total sales 3 quarter: 5,200 GPS devices: Sales price is $450/GPS device 2. Total Sales for the 4 quarter are projected to increase 5% above the 3 quarter total sales due to an aggressive marketing program that began September 1, 2020. Total quarter sales per month are expected to be realized as follows: 25% in October, 35% in November, and 40% in December The sales budgets expressed the dollars and the number si GPS devices sold are as follows: (DFocus COMU uvesare ch O SH a @ 199+ Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing 12 3 4 . . . 1 5 UWA PROJECTED Oct Nov Dec TOTAL QTR SALES REVENUE SALES $614,250 $859,950 $982,800 $2,457,000 SALES: PRICE X QUANTITY $614,250 $859,950 $982,800 $2,457,000 Quantity of GPS Devices Sold Oct Nov Dec TOTAL OTR Quantity of GPS Devices Sold 1,365 1,911 2,184 5,460 3. Monthly Sales are classified as follows and realized in corresponding percentage: a. Cash sales. .28% of total sales b. Credit sales. 72% of total sales 4. Monthly credit sales are collected as follows and in the corresponding proportion: a. Collected in the month of the sale, 40% b. Collected one month after the sale month, 35% C. Collected the second month after the sale month, 25% Da