Prepare and evaluate a cash budget for the months of October, November, and December based on the information shown below. In your evaluation, briefly discuss whether the firm will have any excess cash or external borrowing as well as the amounts during the cash budget period. Month August (actual) September (actual) October (forecast) November (forecast) December (forecast) Sales $3,000,000 $4,500,000 $1,000,000 $1,500,000 $2,000,000 Purchases $3,500,000 $2,000,000 $ 500,000 $ 750,000 $1,000,000 The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. Interest income of $50,000 on marketable securities will be received in December. The firm pays cash for 40 percent of its purchases. The firm pays for 60 percent of its purchases the following month. Salaries and wages amount to 15 percent of the previous month's sales. Sales commissions amount to 2 percent of the previous month's sales. Rent payments of $100,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of $150,000. The firm will pay dividends of $50,000 in December. Fixed assets costing $600,000 will be purchased in November. The firm has a beginning cash balance in October of $100,000 and maintains a minimum cash balance of $200,000.

Prepare and evaluate a cash budget for the months of October, November, and December based on the information shown below. In your evaluation, briefly discuss whether the firm will have any excess cash or external borrowing as well as the amounts during the cash budget period. The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. Interest income of $50,000 on marketable securities will be received in December. The firm pays cash for 40 percent of its purchases. The firm pays for 60 percent of its purchases the following month. Salaries and wages amount to 15 percent of the previous month's sales. Sales commissions amount to 2 percent of the previous month's sales. Rent payments of $100,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of $150,000. The firm will pay dividends of $50,000 in December. Fixed assets costing $600,000 will be purchased in November. The firm has a beginning cash balance in October of $100,000 and maintains a minimum sh balance of $200,000