SPV management expects to have 145 rentals during July and a cash balance of US$253,100 on August 5, after receiving amounts due from the owners but before any August payments are made.

Required Deliverables:

1. Prepare a cash budget for August, September, and October based on the rental estimates and the information in the case. I have provided an excel template to help you prepare your budget. Begin your August cash budget with the cash balance after receipts of $253,100 as provided in the template. Assume key keeping fees are $2,100 per month.

2. Sensitivity Analysis: What would happen to the cash budget if a hurricane occurred in the second week of September, resulting in costs for repairs and operations, and reduced rentals for September and October? Adjust the cash budget based on this hurricane scenario as provided in the second excel template.

3. Write a brief report (3-4 pages plus exhibits) to present the cash budget and the sensitivity analysis based on hurricane impact from instruction #2. What processes or procedures might have to be changed in the event of a hurricane? Provide guidance on a disaster preparedness plan for managing cash and maintaining essential business operations in the event of a disaster like a hurricane. Support your report with your budget analysis.