Can you please assist. ContinuedTaxation of $85,000 has to be settled in December.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 quartertyinterest computed at a rate of 5% per annum is also expected to be collected.xl)The cash balance at December 31, 2021 is expected to be an overdraft of $236,000.Required:(a)The business needs to have a sense of its future cashflows and therefore requires thepreparation of the following:o A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months October to December.o A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months October to December.O A cash budgel, with a total column, for the quarter ending December 31, 2021, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three onths, given that no financing activitios took place.(b)Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter and has asked you to furnish him with the figures for the expected tradereceivables and payables to be included in the statement at December 31, 2021. Is that areasonable request? If yes, what should these amounts be?(c)Upon receipt of the budget the team manager has now informed you that the managementof Miler Merchandising & More have ndicated a desire to maintain a minimum cashbalance of S125.000 cach month. Based on the budget prepared. will the business beachieving this desired Larget? Given that the management does not wish to borrow anyfunds from outside sources. suggest three (3) intenal strategies that the business mayemploy in order to mprovethe oreanizaton's monthly cash fow Each strategy must be fullyexplained The managament nooountant at Mler Maretpreparing the oash budget for lthe business for the fourth quarier of 2021. It is oustomery for theusiness lo borrow money during thin quarler. Exracts Irom the anlan and purchanas budgeta aroes follows:eing & More, Odel Rusee a in the procen ofCashSalesSalesOn AccountMonthPurchesesAugustSeptemberOctoberNovemberDecember$640,000$550,000$600,000$800,000క00,000An analysis of the records shows that trade receivables are settled according to thefollowing credit pattern, in accordance with the credit terms 4/30, n90.585,000$70,000$88,550$77,160$174,870$420,000$550,000$500,000S600,000450,00050% in the month of sale30% in the first month following the sale20% in the second month following the saleExpected 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 foliowing monthFixed operating expenses which accrue evenly throughout the year, are estimated to be$1.680.000 per annum, (including depreciation on non-current assets of S420,000 perannum) and is settled monthly.iv)Wages and salaries are expected to be $2,280,000 per annum and will be paid monthly.v)Other operating expenses are expected to be $108.000 per quarter and will be settledmonthly.In the month of November, an old motor vehicle, which cost $650.000, will be sold to anemployee at a gain of S30.000 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 cqual amounts in December2021 & January of 2022.vi)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 sgning of the agreement in November, with the balance to be settled in fourequal monthly instaiments, starting in December 2021vii)The management of Miller Merchandising Company has negotiated with a tenant to rentoffice space to her begimg Nevember 1 The retal is $624.000 per annum.month's rent along with one month's safety depost is expected to be colected onNovember 1. Thereafter, monthly rental income becomes due at the beginning of eachmonth.viii)The firstContinued.Page 1

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