Yellow Stone Co. Ltd had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000,$80,000, and $100,000, respectively. The firm has a cash balance of $5,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Other data collated during the financial planning process include: i) 20% of the firm's sales are for cash; 60% are collected in the next month, and the remaining 20% are collected in the second month following sale. ii) The firm receives other income of $2,000 per month. iii) The firm's actual or expected purchases, all made for cash, are $50,000;$70,000, and $80,000 for the months of May through July, respectively. iv) Rental is $3,000 per month. v) Wages and salaries are 10% of the previous month's sales. vi) Cash dividends of $3,000 will be paid in June. vii) Payment of principal and interest of $4,000 is due in June. viii) A cash purchase of equipment costing $6,000 is scheduled in July. ix) Taxes of $6,000 are due in June. Required: a. Prepare the following for Yellow Stone Co. Ltd for the months of May, June, and July: i. Projected Cash Receipts ii. Projected Cash Disbursements iii. Cash Budget b. Comment on how the "bottom two lines" of the cash budget can be used to plan for the firm's short-term borrowing and investment requirements