[The following information applies to the questions displayed below.] Owen Surf Sports is an idea of two budding entrepreneurs. Their plan is to sell kiteboards from a store in the local town. Between them, they invest $34,000 in capital and are in the process of applying for a bank loan, also for $34,000. The loan would be repaid in four years. The owners will also pay the bank annual interest at a rate of 6 percent. The owners are working on a business plan that the bank has requested. The store would sell only two models of kites initially, the X1 and the X2. Data on the kites are given as follows: Additional information on the planned operations for the year includes the following: 1. Equipment costing $50,000 will be purchased for cash when the store opens. The equipment will be depreciated over five years using straight-line depreciation. 2. The owners expect sales to occur uniformly over the year. Sales will be both for cash (60 percent) and on account (40 percent). Sales on account are assumed to be collected in two months. 3. The owners will maintain inventory equal to one-half of a month's sales. All kites will be purchased from the manufacturer on credit with payment made one month after purchase. 4. Annual cash selling, general, and administrative expenses are $47,000 fixed plus 10 percent of revenues. 5. The applicable income tax rate is 20 percent. Prepare a cash budget for the year. Complete this question by entering your answers in the tabs below. 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? 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) ? Note: Do not round intermediate calculations. Round your answer to 1 decimal place