Q1: Assuming that CompuTech will begin operations with a Cash Balance of $10,500 on January 1, 2021 please complete a Cash Budget for the Martins to share with their accountant. 02: What impact on the Cash Budget would an increase in COGS were to increase by 30% due to product sourcing problems arising from the pandemic? Further it is estimated that customers may delay their payments resulting in only 20% paying immediately with the remaining 80% carrying over until the second month as AR. What would the Martins have to plan for if the above issues unfolded? Several assumptions need to be reflected in the cash budget. Revenues are estimate to be $30,000 per month; it is estimated that 40% of the customers would pay immediately while 60% would pay up between 30 and 60 days. Their COGS is estimated to be $11,000 per month and the accountant suggested that 50% of their COGS should be paid at the time of purchase with the remaining 50% delayed until the next month. Salaries at $9,000 per month, Lease Costs of $1,200 per month, Utilities of $300 per month, Office Supplies of $100 per month and Advertising of $200 per month need to be accounted for and paid out in each month. Federal Tax installments of $4,000 in March and $5,000 in June also need to be recorded. Q1: Assuming that CompuTech will begin operations with a Cash Balance of $10,500 on January 1, 2021 please complete a Cash Budget for the Martins to share with their accountant. Q2: What impact on the Cash Budget would an increase in COGS were to increase by 30% due to product sourcing problems arising from the pandemic? Further it is estimated that customers may delay their payments resulting in only 20% paying immediately with the remaining 80% carrying over until the second month as AR. What would the Martins have to plan for if the above issues unfolded? It is 2022 and CompuTech has decided to expand its business. They have the choice of taking out a competitor in their community and expanding their market presence or they can open a second business which is a franchise opportunity In the first option the takeover cost would be $300,000 and would result in net cash flow of $60,000 per year beginning in the second year of ownership. No net cash flow is expected in the first year as takeover expenses would offset any proceeds. It is estimated that the business begin acquired could have a residual value of $200,000 in the 10th year. This second option involves franchising at a cost of $75,000 per year with the potential to bring in $100,000 of net profits in each year, beginning in year 2. No proceeds are forecast in year 1. The franchise would run for only 8 years. Q1: If the CompuTech cost of capital is 7% which of the options available to the Martins would you recommend? Remember to do a NPV calculation, a Payback calculation, and an IRR calculation to support your