Kindly assist with the following: a) The business needs to have a sense of its future cashflows and therefore requires the preparation of the following:A schedule of budgeted cash collections for the trade receivables (sales on account) for each of the months October to December.A schdule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December.A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place. The management accountant at Miller Merchandising & More, Odail Russell is in the process ofpreparing the cash budget for the business for the fourth quarter of 2021. It is customary for thebusiness to borrow money during this quarter. Extracts from the sales and purchases budgets areas follows:CashSalesSalesMonthOn AccountPurchasesAugustSeptemberOctoberNovember$85,000$70,000$88,550$77,160$174,870$640,000$550,000$600,000$800,000$500,000$420,000$550,000$500,000$600,000$450,000Decemberi)An analysis of the records shows that trade receivables are settled according to thefollowing credit pattern, in accordance with the credit terms 4/30, n90:50% in the month of sale30% in the first month following the sale20% in the second month following the saleii)Expected purchases include monthly cash purchases of 5%. All other purchases are onaccount. Accounts payable are settled as follows, in accordance with the credit terms -2/30, n60:60% in the month in which the inventory is purchased40% in the following monthiii)Fixed operating expenses which accrue evenly throughout the year, are estimated to be$1,680,000 per annum, (including depreciation on non-current assets of $420,000 perannum) and is settled monthly.iv)Wages and salaries are expected to be $2,280,000 per annum and will be paid monthly.Other operating expenses are expected to be $108,000 per quarter and will be settledmonthly.v)In the month of November, an old motor vehicle, which cost $650,000, will be sold to anemployee at a gain of $30,000. Accumulated depreciation on the motor vehicle at that timeis expected to be $540,000. The employee will be allowed to pay a deposit equal to 60% ofthe selling price in November and the balance settled in two equal amounts in December2021 & January of 2022.vi)vii)Computer equipment, which is estimated to cost $320,000, will be acquired in November.The manager has made arrangements with the dealer to make a cash deposit of 50% of theamount upon signing of the agreement in November, with the balance to be settled in fourequal monthly instalments, starting in December 2021viii) The management of Miller Merchandising Company has negotiated with a tenant to rentoffice space to her beginning November 1. The rental is $624,000 per annum. The firstmonth's rent along with one month's safety deposit is expected to be collected on iii)Fixed operating expenses which accrue evenly throughout the year, are estimated to be$1,680,000 per annum, (including depreciation on non-current assets of $420,000 perannum) and is settled monthly.iv)Wages and salaries are expected to be $2,280,000 per annum and will be paid monthly.Other operating expenses are expected to be $108,000 per quarter and will be settledmonthly.v)In the month of November, an old motor vehicle, which cost $650,000, will be sold to anemployee at a gain of $30,000. Accumulated depreciation on the motor vehicle at that timeis expected to be $540,000. The employee will be allowed to pay a deposit equal to 60% ofthe selling price in November and the balance settled in two equal amounts in December2021 & January of 2022.vi)vii) Computer equipment, which is estimated to cost $320,000, will be acquired in November.The manager has made arrangements with the dealer to make a cash deposit of 50% of theamount upon signing of the agreement in November, with the balance to be settled in fourequal monthly instalments, starting in December 2021viii) The management of Miller Merchandising Company has negotiated with a tenant to rentoffice space to her beginning November 1. The rental is $624,000 per annum. The firstmonth's rent along with one month's safety deposit is expected to be collected onNovember 1. Thereafter, monthly rental income becomes due at the beginning of eachmonth.Continued..Page 2Continued...ix)Taxation of $85,000 has to be settled in December.x)A money market instrument purchased by the company with a face value of $300,000 willmature on October 15, 2021. In order to meet the financial obligations of the business,management has decided to liquidate the investment upon maturity. On that date quarterlyinterest computed at a rate of 5% per annum is also expected to be collected.хі)The cash balance at December 31, 2021 is expected to be an overdraft of $236,000.

Answered: Image /qna-images/answer/9c26a8b6-2564-4944-9d37-e133958694d5.jpg

Answered: Kindly assist with the following:…

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...