Sept Jacob Ltd. Just started business in June. The Board of Directors of Jacob Ltd. is concerned about possible cash shortages arising from a number of large payments due in the third quarter of 2020. The following information is made available. June July Aug Oct 2020 2020 2020 2020 2020 $'000 s'000 000 000 $'000 Forecast sales 200 280 300 385 460 General expenses 76 95 75 100 Purchases 125 170 190 240 85 220 Additional information: (i) It is expected that 40% of each monthly sales are in cash. The remaining sales are offered with a one-month credit period, which from past experience the firm expects a 5% of uncollectible debts. (ii) Purchases made from suppliers are paid 50% in the month of the purchase, 30% in the following month, and the balance two months later (iii) General expenses are paid one month in arrears. Included in "general expenses" is depreciation expense of $10,000 (iv) Selling expenses, which are paid as incurred, are estimated to be 5% of the monthly sales. (v) A new machine is to be installed in July costing $45,000 and will be paid for in September (vi) in September, a dividend of $50,000 is to be paid to ordinary shareholders. (vii) Jacob Ltd. plans to issue 10,000 $0.50 ordinary shares at a premium of 80.20, for cash in August (viii) The cash balance on July is expected to be $5,000. Required: (a) A cash budget for each of the three months July to September 2020, showing the cash balances at the end of each month, based on the forecast. (b) Comment on the cash flow position of the company and provide recommendations to improve the cash flow position of the company