Please answer the questions in the below attachment. Thank you.
Please answer the questions in the below attachment. Thank you.
Gladiator RoboticsRead the information below and complete Parts I, II and IIIThe board of directors of Gladiator Robotics is considering whether or not to donate to anational robotics convention for high school students interested in technology andengineering. The company needs you to prepare a monthly cash budget to determinethe available cash reserves for January, February, and March. Relevant data appearbelow.OctoberactualNovemberactualDecemberactualJanuaryFebruary MarchSales$300,000 $325,000$450,000$310,000 $350,000$400,000All sales are on account. Collections are expected to be 60% in the month following thesale, 25% in the second month following the sale, and 10% in the third month followingthe sale. Five percent are deemed to be uncollectible.The company sold equipment in February for $20,000 and received a dividend oninvestments of $4,000 in March.Cash on hand as of January 1stis $14,000.Material purchases are as follows:October November December January February March$80,000$85,000$105,000$80,000$88,000$92,000Material purchases are paid 50% in the month purchased and the remainder in thefollowing month.Other disbursements are paid in the month incurred.January February MarchLabor and wages150,000185,000215,000Selling costs62,00068,00078,000G & A costs30,00031,00038,000
Income taxes32,000Capital equipment 50,000The company wants to maintain a cash balance at the end of each month of at least$10,000. It has a $250,000 line of credit at the bank and will borrow from the bank inorder to maintain this balance.Part I: Prepare a monthly cash budget for January, February, and March following thetemplate on page 307 in the textbook.Part II: Analyze the cash budget and make recommendations to the board of directors ofGladiator Robotics regarding your findings. Be specific regarding possible causes andremedies (if applicable).
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