Q4 - May I please get help with/guidance for the following homework problem?

a)Use the following information to calculate a cash budget for Knightsbridge Corporation for the month of June 2020.

• In May, 30-day credit sales were $175,000; 80% of this amount is estimated to be collectible in June.

• June sales are estimated to be $425,000; cash sales are usually 25% of total sales. Only 10% of credit sales are collected in the month in which the sale is made.

• Total fixed expenses are $60,000 per month, including $26,000 depreciation. Variable expenses are 55% of sales. All expenses requiring payment are paid in cash when incurred.

• A $40,000 note payable must be paid on June 30. As of May 31, the cash balance is $94,000.

b)Consider a sample industry and organization , for example a manufacturing company.

• What drives operational budgets?
• What are the trends in those revenue streams?
• What could be the greatest challenge in preparing a budget in your organization?