Berlin Inc. expects sales of $300,000 during each of the next three months. It will make monthly purchases of $170,000 during this time. Wages and salaries are $30,000 per month plus 4% of monthly sales. The firm expects to make a $60,000 tax payment in the first month and a $45,000 purchase of fixed assets in the second month. It expects to receive $24,000 in cash from the sale of an asset in the third month. All sales and purchases are for cash. Beginning cash and the minimum cash balance equal zero. ,,a.Construct a cash budget for the next three months. Use the minus sign to enter any subtractive numbers. For the cells that do not require an entry, enter a zero, which will be considered as the correct answer., Month 1 Month 2 Month 3 , ,Sales $ 300,000 $ 300,000 $ 300,000 ,Asset sale ,Total cash inflow ,Purchases ,Wages ,Taxes ,Fixed assets ,Total cash outflow , ,Net cash flow $ $ $ , ,Beginning cash balance ,Ending cash balance ,,,b.Berlin is unsure of the level of sales, but all other figures are certain. If the most pessimistic sales figure is $250,000 per month and the most optimistic is $360,000 per month, what are the monthly minimum and maximum ending cash balances that the firm can expect for each month? Use the minus sign to enter any subtractive numbers.,Cash Balance , , Month 1 Month 2 Month 3 , ,Optimistic Case $ $ $ ,Pessimistic Case ,
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