The following information was extracted from the books of Wheels and Bearings Ltd a manufacturer of automotive parts. Cash budgeting is an integral aspect of the company's operations. At the end of June 2009 the company had a closing cash balance of $250,000: (1) Budgeted sales: S 2009 April 2,500,000 May 3,000,000 June 2,800,000 July 3,500,000 August 2,700,000 September 3,200,000 October 2,600,000 3,700,000 November Table 1.0 Information from the company's records revealed that 40% of sales are collected in cash, 40% one month later, and 20% the next month. R (2) Taxation of $600,000 is due in the first month of the quarter in question. P (3) Monthly fixed operating expenses amount to $1,750,000. Included is monthly depreciation of $150,000. P (4) The company is to receive insurance claim of $5,000,000 for a vehicle that was written off in an accident. This amount is to be received as follows: $2,500,000 in the second month of the third quarter; $1,500,000 in the last month of the third quarter; and the balance in January 2010. R (5) In July 2009 the company sold a motor vehicle for $250,000. R (6) A debt of $400,000 written off as bad in 2008 was recovered in September 2009. R Budgeted purchases: 2009 April 4,000,000 May 2,800,000 June 3,500,000 July 3,600,000 August 3,000,000 September 2,800,000 October 4,000,000 3,400,000 November Table 1.1 (7) An extract from the company's records revealed that 50% of the company's purchases are done for cash; 40% is paid for the month after purchase, and 10% the next month. P (8) Salesmen receive 5% commission on the total sales collection for each month and insurance of $110,000 is due monthly. P