Required:

a$.$ Prepare a cash budget for the year.

b$.$ The owners want to ensure that they have cash on hand at the end of the year equal to the current accounts payable balance on December $31.$ Will the store meet that requirement?

c$.$Consider only the assumption about the percentage of sales that will be made on account $($currently $40$ percent$).$ What assumption about this percentage would exactly achieve the goal set by the owners in requirement $($b$)?$