Whiz Kids Hotel has asked you to create a cash budget for August to October in order to determine if it will need to borrow any money. The following information was provided: OTHER CASH RECEIVED -NOT SALES June July August September October November 172,000 142,000 121,000 93,000 76,000 81,000 80,000 75,000 70,000 50,000 45,000 The hotel's assumptions for the months of June - November are as follows for its cash collections of sales: o 40% of its sales during the month 55% of the sales the following month o 5% of the sales are never collected, they are bad debts 0 Each month it purchases inventory equal to 60% of the next month's expected sales. The hotel pays its vendors for the purchases 40% in the month of the purchase and 60% the month following the purchase. . O In addition to inventory purchases the hotel has the following monthly expenses: o Operating expenses are 40% of the current month's sales and are paid in the same month they are incurred. o The hotel has a monthly mortgage payment of $65,000 which includes interest. An insurance expense is $2,000 a month, the policy for the year is purchased in September In August, the hotel plans on replacing one of the chillers, the cost will be $25,000. Sales tax is paid to the state the month following the sale, the sales tax rate is 5%. Note: May's payment, made in June was $3,500. o . A minimum cash balance of $30,000 must be maintained each month. The hotel's cash balance at the end of May was $30,000 Required: Prepare a cash budget for August to October, in good form (i.e., use the example provided on the in-class problems or the template provide in the Homework folder. Indicate which months will be issues for Whiz Kids Hotel due to the minimum cash balance required