Sunny and Clear, Inc. is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts recelvable on March 31, 2020 are the result of March's credit sales to be collected the next month. Budgeted sales for the period were as follows: The company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are shown in the blue table; the rest is paid for in the following month. The accounts payable on March 31 are the result of March purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, $8,500; rent, $2,000; other expenses (excluding depreciation), are reflected in the blue able as a percent of sales. Depreciation is $1,200 for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired for cash during the quarter included equipment of $3,000 in April and $3,500 in May. The company wishes to maintain a minimum cash balance of $3,000 at the end of each month. The company has a financing facility that allows the company to borrow in increments of $1,000 at the beginning of each month from a local bank, up to a total loan balance of $30,000. The interest rate on these loans is 1.5% per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter. Additional information: *Provide a short write up (2-3 paragraphs) of the cashflow situation at this company after you completed the budgets. What are your concerns and what would you recommend to management