PROBLEM 3 (30 Points) Megabucks Corporation is a distributr of medical supplies. Management is stadyhn needs for Oetober through December and has assembled the followig Sales October November 554,000 $22,000 S31,000 S 5,000 s 7,000 December $50,000 $20,000 $26,000 S 5,000 $11,000 Purchases of Merchandise S26,000 560,00 Cash Operating Costs $30,000 S 5,000 Equipment Acquisitions S 5,000 Depreciation Expense Dividend Payments S 4,000 The pro forma balance sheet on September 30 had the following anticipated account balances: Cash Accounts Payable S18,000 $10,000 S22,000 Accounts Receivable of all customer accounts, 70% are collected in the month of sale; 25% are collected in the following month. Because of a liberal credit policy, bad debts amounting to 5% of sales are anticipated. Management believes that only $21,000 of the accounts outstanding on September 30th will be collectible. of the merchandise purchases, 40% are paid for in the month of purchase; the remaining 60% are paid in the following month. Megabucks Corporation maintains a $6,000 minimum cash balance at all times. Should borrowing be necessary, financing is available in S 1,000 multiples at a 10'% annual interest rate. Assume that all borrowing takes place at the beginning of the month. Any repayments (including interest) are made at the end of the month. Principal repayments are also made in S1,000 increments. REQUIRED: Prepare in good form a eash budget for the Quarter