Question The president of Univax, Inc., h year, Year 2. Univax is a distributo be accompanied by a detailed cash budget that shows amounts that will be needed and the quarters in which repayments can be made. as just approached the company's bank seeking short-term financing for the coming r of commercial vacuum cleaners. The bank has stated that the loan request must the quarters in which financing will be needed, as well as the To provide this information for the bank,the president has directed that the following data be gathered from which a eash budget can be prepared: a. Budgeted sales and merchandise purchases for Year 2, as well as actual sales and purchases for the last quarter of Year 1, are as follows: Merchandise Purchases Sales $220,000 $120,000 $320,000$200,000 Year 1: Fourth quarter actual Year 2: First quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated $420,000$250,000 $520,000 $400,000 $180,000 $310,000 The company typically collects 48% of a quarter's sales before the quarter ends and another 50% in the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the actual data for the Year 1 fourth quarter Some 20% of a quarter's merchandise purchases are paid for within the quarter. The remainder is paid in the following quarter. Selling and administrative expenses for Year 2 are budgeted at $82,000 per quarter plus 9% of sales. Of the fixed amount, $12,000 each quarter is depreciation. The company will pay $13,000 in cash dividends each quarter. Land purchases will be made as follows during the year: $83,000 in the second quarter and $47,200 in the third quarter. b c. d g. The Cash account contained $23,000 at the end of Year 1. The company must maintain a minimum cash balance h. The company has an agreement with a local bank that allows the company to borrow at the beginning of each i. At present, the company has no loans outstanding of at least $21,000. quarter. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded Required: 1. Prepare a schedule of expected cash collections on sales by quarter and in total for Year 2. 2. Prepare a schedule of expected cash disbursements for merchandise purchases, by quarter and in total for Year 2. - 3. Prepare a cash budget by quarter and in total for Year 2