please provide all necessary explanations as per questions 

1. XYZ Pty Ltd operates in a seasonal industry with a sales peak in spring. Budgeted sales, along with budgeted raw materials and labour costs are shown in the table below. Extract from budgeted income statement Month Sales Labour and materials May $150,000 $105,000 June $160,000 $112,000 July $210,000 $147,000 Aug $300,000 $210,000 Sep $400,000 $280,000 Oct $500,000 $350,000 Nov $340,000 $238,000 Dec $200,000 $140,000 All sales are on credit and past records indicate that collections are as follows: 20% in the month of sale, 55% in the month after sale and 25% in the second month after sale. Labour and materials are paid as follows: 60% in the month the expenses are incurred and 40% in the month following that. Other budgeted expenses during the period July to December are as follows: selling, general and administration of $30,000 per month; rent of $10,000 per month; and depreciation of $20,000 per month. Where relevant, payments are made in the month the expenses are incurred. Taxation payments of $33,000 each will be made at the end of September and end of December. In October, company motor vehicles will be traded-in for new models with an expected net cash payment of $80,000. The motor vehicles are expected to have an 8 year life. The cash balance at 1 July is $10,000. Required: (a) prepare a cash budget for the company for July through to December (inclusive) (9 marks) (b) advise the company on the debt financing that would best be used to deal with cash shortfalls and major payments in the cash budget. Your advice in this part should explain and provide reasons for your recommendations and be a maximum of 200 words. (6 marks)