(Preparation of a cash budget) The Sharp Corporations projectedsales for the first eight months of 2011 are as follows:January $89,000 May $300,000February $120,500 June 269,000March $134,500 July 224,100April 240,900 August 150,500Of Sharpâs sales, 10 percent is for cash, another 60 percent is collected in the month following the sale, and 30 percent is collected in the second month following the sale. November and December sales for 2013 were $219,900 and $175,300 respectively. Sharpe purchases its raw materials two months in advance of its sales equal to 60 percent of their final sales price. The supplier is paid one month after it makes delivery. For example, purchases for April sales are made in February and payment is made in March. In addition, Sharp pays $10,000 per month for rent and $19,800 each month for other expenditures. Tax preparation of $21,600 are made each quarter, beginning in March. The companyâs cash balance at December 31, 2013, was $21,500; a minimum balance of $15,000 must be maintained at all times. Assume that any short-term financing needed to maintain the cash balance is paid off in the month following the month of financing if sufficient funds are available. Interest on short-term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects to have a need for an additional $60,360, these funds would be borrowed at the beginning of April of April with interest of $604 (i.e., 12% x 1/12 x$62,080) owed for April being paid at the beginning of May.a. Prepare a cash budget for Sharpe covering the first seven months of 2014.b. Sharp has $200,700 in notes payable due in July that must be repaid or renegotiated for an extension. Will the firm have sufficient cash to repay the notes?Complete (month by month) the cash budget below: 9round to the nearest dollar.)Nov Dec JanSales $ 219,900 $175,300 $89,000Cash ReceiptsSales for cash (10%) ——First month after sales (60%) ——-Second month after sales (30%) —–Total Cash Receipts ——Cash disbursements ——Raw materials ——Rent ——Other expenditures ——-Tax prepayments ——Total Cash Disbursements ——-Net Change in Cash —–Net change in cash for period ——(+) beginning cash balance ——(-) Interest on short-term borrowing ——(=) Ending cash balance b/borrowing ——New Financing NeededFinancing needed for period —-Ending cash balance $ 22,300Cumulative borrowing —–could you also provide me with the formulas used to obtain the results for each amount
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