Prepare analysis of cash requirements for the following:

• 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.

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. The consultant has prepared the following budget for the project: PROJECT: Project Budget Networking and software upgrade Hours/unit by development phase Cost by development phase Chargeout Implemen Total rate/hour Total by cost Cost categories Analysis Design tation hours/unit or unit cost Analysis Design Implementation Total cost category Labour Project manager 256 224 136 616 $ 653 $ 167, 168 $ 146,272 88,808 402,248 Application customization and implementation 40 100 35 175 369 14,760 36,900 12,915 64,575 End user training 50 180 176 406 EAt 398 19,900 $ 71,640 70,048 161,588 Process analysis and development 110 250 120 480 301 $ 33, 110 $ 75,250 36, 120 144,480 $ 234,938 $ 330,062 $ 207,891 $ 772,891 $ 772,891 Hardware Servers 3 3 $ 156,500 $ $ $ 469,500 $ 469,500 Network connections (equipment and telecommunications) $ 85,400 $ 85,400 85,400 Network connection fees 2,500 2,500 2,500 Hardware maintenance contract 10,000 $ 10,000 $ 10,000 -$ 87,900 $ 479,500 $ 567,400 $ 567,400 Software Application software licence fees 1 1 25,000 - $ 25,000 $ $ 25,000 1 13,000 CA CA CA Application maintenance contract $ $ 13,000 13,000 - $ 25,000 $ 3,000 $ 38,000 $ 38,000 Testing Testing 20 144 600 764 $ 100 $ 2,000 $ 14,400 $ 60,000 $ 76,400 $ 76,400 Reserves (10% of total estimate) $ 23,694 $ 45,736 $ 74,739 $ 144, 169 $ 144, 169 Total project cost estimate $ 260,632 $ 503,098 $ 835, 130 $ 1,598,860 1,598,860The consultant will bill BBCC quarterly using the following completion rates. The amount is considered due at the end of each quarter for the year. Note that hardware and software costs are billed in total at the beginning of the phase they are implemented. All other costs are based on percentage completion of the phase. YTD % completion Analysis Design Implementation January 25% 0 February 35% 10% ooooo March 50% 20% April 60% 25% May 75% 30% June 85% 40% 10% July 85% 45% 20% August 85% 50% 25% September 90% 60% 40% October 95% 70% 50% November 100% 80% 60% December 100% 75% The cash budget should account for these costs as billed by the consultant