Q-1 Budgeted items for 2021 include the following: Beginning cash balance: $30,000 7 marks Selling Costs: $50,000 which is expected to increase by 10% each quarter Equipment Purchase: $80,000 only in first quarter Dividend from investment $55,000 is expected to be received in 4th quarter. The Company's credit history indicates that 40 percent of revenue is collected in the quarter the sales occur, 60 percent in the quarter following the month of sales. Assume cash sales remain steady at $50,000 each quarter, credit sales are $600,000 in Quarter 1, $520,000 in Quarter 2, $480,000 in Quarter 3, and $650,000 in Quarter 4. Company's payment policy is to pay 20 percent of its accounts payable in the quarter purchases are made, 80 percent in the following quarter. Assume credit purchases totaled $200,000 in Quarter 1, $220,000 in Quarter 2, $230,000 in Quarter 3 and $240,000 in Quarter 4. Prepare Cash budget Q-2 Corp. is planning to buy production machinery costing $100,000. This machinery's expected useful life is five years, with $10,000 as residual value. The machinery will require maintenance cost of $10,000 at the end of year 3. Corp. uses a discount rate of 10% and has calculated the following data pertaining to the purchase and operation of this machinery: 5 marks Year Estimated annual net cash inflow 2 3 4 5 $60,000 30,000 20,000 20,000 20,000 Calculate the net present value and suggest whether to buy this machinery.