Problem 2 - Planning, Budgeting, and Controlling (15%) One day in March 2013, Robert Sutherland, industrial commissioner for the city of South Elk, received a telephone call from Nick Miron, president of Scal Equipment Lad.. who wanted to see him as soon as possible. When Sutherland arrived at Miron's office, Miron was sitting at his desk going over his current year's cash budget. Miron informed Sutherland that as a result of the revised credit restrictions adopted by his bank, he was being asked to prepare an estimate of his financial requirements for the balance of the calendar year. All major customers of the bank were asked to provide this information Miron also informed Sutherland that he was going to have a meeting with Joanne Armstrong, the lending officer responsible for handling the company's account, and that he wanted to show her his financial requirements for the rest of the calendar year Consequently, Miron asked Sutherland to help prepare a budget forecast. On the basis of the information available, Miron felt that it would not be necessary to borrow funds before July 2013 The budget would therefore be prepared for the period July 1, 2013, to January 31, 2014 The marketing department provided the following sales forecast: July S 50,000 August 100,000 September 500,000 October 650,000 November 550,000 December 400,000 January 400.000 Ten percent of sales are for cash, 60% of sales are collected after 30 days, and the remaining 30% after 60 days. Purchases, which are 80% of sales, are incurred in the month in which the sales are made. These goods are paid 30% in cash and 70% within 30 days. Distribution and administrative expenses are $20,000 per month, plus 1% of monthly sales, Start-up costs in July are $50,000. Income taxes for the entire operating period are paid in April and are 40% of the profit. The monthly depreciation is $20.000. The company feels that it is necessary to maintain a minimum cash balance of $30,000 during the selling season The cash balance on July 1 is $75,000. Question Prepare a monthly cash budget from July 1, 2013 to January 31, 2014. Please ensure to show your work. You won't get full marks if you just provide your final