You have been engaged as a consultant to design a master budget model and then to assist Helping Hand Corp. in making some management decisions based on that master budget.

Helping Hand is a small, rapidly growing wholesaler of consumer electronic products. The companys main product lines are small kitchen appliances and power tools. The marketing manager has recently completed a sales forecast. She believes the companys sales will increase by 2 percent each month over the previous months sales from December 2019 through March 2020. Then sales are expected to remain constant for several months. Helping Hands projected balance sheet as of December 31, 2019 is as follows: Cash	$ 140,000
Accounts receivable	202,851
Marketable securities	55,000
Inventory	35,894
Buildings and equipment (net of accumulated depreciation)	610,000
Total assets	$ 1,043,745
Accounts payable	$ 124,488
Sales commissions payable	7,038
Bond interest payable	5,000
Property taxes payable	0
Bonds payable (3%; due in 2023)	500,000
Common stock	250,000
Retained earnings	157,219
Total liabilities and stockholders' equity	$ 1,043,745

5) Helping Hands board of directors has indicated an intention to declare and pay dividends of $100,000 on the last day of each quarter.

6) The interest on any short-term borrowing will be paid when the loan is repaid. Interest on Helping Hands bonds is paid semiannually on February 28 and August 31 for the preceding six-month period.

7) Property taxes are paid quarterly on March 31, June 30, September 30, and December 31 for the preceding three-month period.

5) Summary cash budget:

2020
January	February	March	1st Quarter
Cash receipts (sch 2)
Less: Cash disbursements (sch 4)
Change in cash balance during period due to operations
Sale of marketable securities (1/2/20)
Proceeds from bank loan (1/2/20)
Purchase of equipment
Repayment of bank loan (3/31/20)
Interest on bank loan
Payment of dividends
Change in cash balance during the month
Beginning cash balance
Ending cash balance

6) Prepare a memo to the president of Helping Hands Corp with at least two recommendations on how the company can ensure it completes the first quarter of 2020 with the minimum required cash balance. You should provide a plan to support your recommendation. For example, if you recommend an increase in sales, how can this be attained. Be specific. You should provide specific financial information for your recommendations utilizing your model (include a model for each of your recommendations). For example, if the company does X, the change in ending cash will be Y. Your model will become the property of Helping Hands Corp. and should be easy to use. Not buying the equipment is not an option. All assumptions are based on the purchase of the new equipment.