The only variable selling cost is a sales commission based on a percent of sales revenue. Input the percent you wish to pay your sale manager. Selling expenses include a fixed component for the sales managers salary and car allowance for any company business use of their personal auto. Input the monthly salary you wish to pay for compensation, including the car allowance Input the monthly salary for your office manager. Calculate the breakeven sales as well as the sales needed to make $200,000 in net income. You are to look over this financial plan and make adjustments in the data you have input, in order to obtain the most reasonable and not excessively optimistic results. The Cash Budget Once you are satisfied with your operating budget, you must prepare a cash budget based on estimated cash flows from collections on customer receivables and cash payments. Ensure that the sales revenues for January March is the same as that on the operating budget. Using the aging of cash collections, calculate total cash receipts for January March. For each months cash disbursements, you are to assume that half of the direct material payments are from the current months purchases and half are from the prior months purchases. All selling and administrative expenses are paid in the month incurred. Calculate the forecast direct material cash payments by month. You are to decide in which month to invest a significant amount of cash in a facility expansion. You are also to decide on the timing and amount of financing that will cover any month in which you do not meet the compensating cash balance requirement. At the end of the first quarter, management desires to have any new debt for this expansion paid-off.