QUESTION $2$

Wood Products Inc. expects to have a cash balance of $$25,000$ on January $1.$

Relevant information is as follows $($See image below$)$:

Required

$($a$)$ Prepare a cash budget for January, February, and March. $(15$ marks$)$

$($b$)$ Is there a problem with the cash budget? Provide your comments to support

your answer, including possible solutions to address any problems, where

applicable $(10$ marks$)$