Pls help with solving the following problem. Thanks

P22'36- Cash Budget L03 Assume all ()'tet- itepot stores do cash budgeting every quarter. One store is planning its cash needs Office Depot. "\"3- for the third quaner of the year. and the following information is available to assist in preparing a cash (GDP) budget. Budgeted Income statements for July through October are as follows: July August September October Sales .............................. $45,000 852.000 880.000 575.000 Cost of goods sold ................... 23.500 25.500 30,500 35,000 Gross prot ......................... 21.500 26.500 29.500 40.000 Leas other expenses Selling ........................... 6.000 8.000 8.500 1 0.500 Adm'nlstralive ..................... 9.100 10.500 8.500 9.400 Total ............................ (15.100) (18.500) (17.000) (19.900) Net income ......................... S 6.400 5 8.000 512.500 520.100 Additional information follows: I. Other expenses. which are paid monthly. include 53.500 of depreciation per month. 2. Sales are 44% for cash and 56% on credit. 3. Credit sales are collected 50% in the month of sale. 35% one month after sale. and 15% two months after sale. May sales were $40,000. and June sales were 542.000. 4. Merchandise is paid for 50% in the month of purchase: the remaining 50% is paid in the following month. Accounts payable for merchandise at June 30 totaled $12,000. 5. The store maintains its ending inventory levels at 30% of the cost of goods to be sold in the follow- ing month. The inventory at June 30 is $7.600. 6. An equipment note of 510.000 per month is being paid through August. . The store must maintain a cash balance of at least $ l0.000 at the end of each month. The cash bal- ance on June 30 is 510.000. 8. The store can borrow from its bank as needed. Borrowings and repaymean must be in multiples of S l00. All borrowings take place at the beginning ofa month. and all repayments are made at the end of a month. When the principal is repaid. interest on the repayment is also paid. The interest rate is 6% per year. I Required a. Prepare a monthly schedule of budgeted operating cash receipts for July. August. and September. I). Prepare a monthly purchases budget and a schedule of budgeted cash payments for purchases for July. August. and September. r. Prepare a monthly cash budget for July. August. and September. Show borrowings from the store's bank and repayments to the bank as needed to maintain the minimum cash balance. --..I