Pats Paints has provided the following estimates relating to the first quarter of the financial year, beginning 1^st July 2023:

Cash Sales$736,000Administration paid$22,600Depreciation of furniture$5,040Payment to Creditors$846,400Credit Sales$1,478,400Credit Purchases$524,800Office Furniture purchased$201,600Receipts from Debtors$1,144,000Receipt of Loan$240,000Utilities paid$60,800Wages paid$864,000

The cash balance at 1^st July 2023 is expected to be $80,000.

Required:

1. Prepare a cash budget for the quarter ending 30 September 2023.

2. Based on your Cash Budget, comment on whether the business can afford to purchase some machinery for $250,000 during this quarter.