The management of a local organization is considering starting an income generating project to improve its financial position and improve the quality of services it is rendering to the community. The Board of Directors requested your help in preparing an operating budget including a cash budget for the six months ending 31/12. The Board of Directors has promised to secure $100,000 for this project if it proves to be profitable. You gathered the following information: $100,000 is expected to be secured by the Board of Directors and the project will start on 1/7/2020. A building will be rented at an annual rent fee of $24,000. It is expected that the rent of the first three months will be paid in advance. It is expected that utilities will be $5,000 per quarter payable at the beginning of the following quarter. Equipment will be purchased for $79,200. 50% will be paid at the time of purchase i.e. in July 2020 and 50% in October 2020. The estimated useful life of this equipment is 4 years. Furniture will be purchased for $4,080 in July 2020. The estimated useful life of this equipment is 2 years. A vehicle will be purchased for $8,160 in July 2020. Annual insurance is $1,500 payable in July 2020. The estimated useful life of the vehicle is 4 years. It is estimated that raw materials usage will average $25,000 monthly. It is also estimated that purchases of raw materials will be $50,000 in July 2020, $60,000 in September 2020, and $60,000 in November 2020. It is expected that the payment of supplies will be made in the month following the purchase. Salaries are expected to be $2,000/month for the first quarter and $3,000 per month for the second quarter. Other operating expenses are estimated at $2,500 per month. Market analysis showed the following sales estimates. Sales will be on credit with collections after 2 months of sales. July 16 Aug 16 Sept 16 Oct 16 Nov 16 Dec 16 Estimated Sales in $ 0 20,000 30,000 50,000 100,000 100,000 Required: Prepare in good form a. A profit and loss budget for the 6 months ending 31/12/2020. b. A balance sheet budget as at 31/12/2020 c. A cash flow budget for the 6 months ending 31/12/2020. d. As a Board of Director Member would you approve to fund the project. Why?