Prepare the montly cash budget from month 1-6

You plan to start a business that sells waterproof sun block with a unique formula that reduces the damage of UVA radiation 30 percent more effectively than similar products on the market. You expect to invest $50,000 in plant and equipment to begin the business. The targeted price of the sun block is $15 per bottle. You forecast that unit sales will total 1,560 bottles in the first month and will increase by 15 percent in each of the following months during the first year. You expect the cost of raw mperials to be $3 per bottle. In addition, monthly gross wages and payroll are expected to be $13,000, rent is expected to be $3,000, and other expenses are expected to total $1,000. Advertising costs are estimated to be $35.000 in the first month, but to remain constant at $5.000 per month during the following eleven months. You do not have suifficient sawings to cover the entire amount required to start your sun-block business. You are going to have to get external financing A local banker whom you know has offered you a six-month loan of $20,000 at an APR of 12 percent. You will pay interest each month and repay the entire principal at the end of six months. Assume that instead of making a single up-front inwestment, you are going to finance the business by making monthly investments as cash is needed in the business. The proceeds from the loan go directly into the business on the first day and are therefore available to pay for sone of the capital expenditures. (a) Prepare monthly cash budget. (Enter negative amounts using negutive sign preceding the number, es. 45 or parentheses es. (45). Round answers to 0 decimal places, 5.275 ) Cash receipts Rowmaterial Gross wages and payroll Advertising Rent Otherexpenses Operations Rawmaterial Grosswages and payroll Advertising Rent Other expenses Operations total Financing and investments Capital expenditures Debi/interest payments Rouns answes to O decimal ploce: 5.275