Terrel Manufacturing expects stable sales through the summer months of June July, and August of $500,000 per month. The firm will make purchases of $150.000 per month during these months. Wapes and salaries are estimated at $60,000 per month plus 7 percent of sales. The firm must make a principal and interest payment on an outstanding loan in June of $100.000. The firm plans a purchase of a fedet costing $75,000 in July. 

The second quarter tax payment of $20,000 is also due in June. Al sales are for cash 

(a) Construct a cash budget for june July, and August, assuming the firm has a beginning cash balance of $100,000 in June 

(b) The sales projections may not be accurate due to the lack of experience by a newly hired sales manager. If the sales manager believes the most optimistic and pessimistic estimates of sales are $600,000 and $400,000, respectively, what are the monthly net cash flows and required financing or excess cash balances?