Prepare an analysis of cash requirements for the following: Purchases for the year for BBCC's most costly source of direct ingredients vanilla flavouring. Base this on the 20X8 forecast sales, the budgeted costs for BBCC's three products and BBCC's paying habits in Exhibit 8. Note: Show all supporting schedules and calculations include production budget, direct material usage budget-vanilla, direct material purchase budget-vanilla and cash disbursement schedule for vanilla purchase. Round quantities to litres. - Cash requirements for the systems upgrade. Base this on the budget provided in Table 4 in Exhibit 8 and the consultant's estimated payments as outlined in the exhibit. Prepare a quarterly cash budget. ) (3 marks) Comment on cash requirements. Consider that BBCC attempts to keep enough cash on hand per quarter to deal with a maximum cash flow demand of $23,000 for these direct ingredients purchases. Consider how much more cash BBCC will need to have on hand to cover the maximum cash flow demand during a quarter for the information technology project. purchases budget for 20X8. Additional information is as follows: BBCC's accounts payable payment policy is to pay 80% of purchases in the quarter purchased and the remainder in the quarter following purchase. When planning for ending chocolate bar inventories, the company's policy is to have 7% of the next quarter's sales available on hand at the end of the quarter for The- Bar and Alamonde. Because Salt-Lick is made to order, no ending inventories of bars are kept. Also, it plans to have 9% of next quarter's estimated ingredients requirements on hand at the end of the quarter for all products. Table 1: Sales forecasts for 20X8 and the first half of 20X9 Quarter The-Bar Alamonde Salt-lick Total 20X8 Q1 180,400 118,800 66,000 365,200 20X8 Q2 187,000 123,200 69,300 379,500 20X8 Q3 206,800 134,200 77,000 418,000 20X8 Q4 178,200 116,600 68,200 363,000 20X8 totals 752,400 492,800 280,500 1,525,700 20X9 Q1 188,600 124,200 69,000 381,800 20X9 Q2 193,200 127,650 70,150 391,000 Table 2: Ending inventories and last-quarter ingredients purchases The-Bar 12,628 Sugar 482 kg Alamonde Salt-Lick 8,316 0 Vanilla Almonds 29 litres 23 kg Fourth-quarter 20X7 purchases Sugar $3,800 Vanilla Almonds $23,000 $2,500 Table 3: Budgeted costs of ingredients (per 1,000 bars) Ingredients Chocolate liquor Price $5.50 per kg The-Bar Alamonde Salt-Lick $ 192.50 $192.50 $ 161.70 Cocoa butter $6.00 per kg 79.80 79.80 54.60 Cocoa powder $1.15 per kg 8.05 4.83 8.05 Cane sugar Emulsifier $0.70 per kg 9.31 9.31 14.46 $0.80 per kg 0.48 1.12 0.56 Vanilla $70.00 per litre 56.35 49.00 98.00 Almonds $10.00 per kg 0.00 21.00 0.00 Himalayan salt $5.50 per kg 0.00 0.00 9.63 Other 0.08 per bar 80.00 80.00 80.00 Total cost of ingredients $ 426.49 $ 437.56 $ 426.99 Table 4: Budgeted costs for systems upgrade Alan has been working with an outside computer consultant in relation to an upgrade to BBCC's information systems. The purpose of this systems project is to do the following: Integrate information systems between the cocoa bean and chocolate bar divisions. Upgrade BBCC's software to a mid-range ERP2 (enterprise resource planning) system.