You are the co-founder of ACME Toy Company, which has been trading for the past two years. You have now made the decision to seek external investment into the company to expand into overseas markets. As part of the due diligence process, potential investors have asked you to prepare a cash flow statement for the quarter four (October. November. December) 2016. Your records show ACME Toy Company will have the following balances on the 1st October 2016: In addition, you anticipate the following transactions during the next three months. i. New bank loan of 300.000 to cover present overdraft on the 1^st October 2016 to be repaid 40.000 every quarter suiting 31^st December 2016. ii. Sales and purchases as follows: iii. Payroll costs of 40.000 each month. iii. Outsourced safety testing of 25,000 in October and a further 25,000 in December, paid at the end of the month in winch the cost is incurred v. New design right filing costs of 5.000 in November 2016, with ongoing IP fees of 1,000 per month. vi. Advertising & Promotion costs of 10.000 per month, with an additional charge of 25,000 in December to cover additional Christmas promotion costs. vii. Debtors and creditors must cleared within the month. Required: a) Prepare a cash budget for the three month period ending 31^st December 2016. b) Is there any month when the cash outflows exceed the cash inflows? If so what month, and given the sector in which the company trades in. is that what would be expected? c) What level of investment would be required in order to have a closing balance of the 31^st March 2016 of 700.000? d) What are the advantages of preparing a cash flow statement