Terry s Equipment Center, referred to in Problem 24-2, is also preparing a cash budget for the first two quarters. In addition to the data given in Problem 24-2, the following estimates are available: • Three-fourths of the receivables will be paid in the quarter in which the sale is made and 24 percent in the following quarter. • Sixty percent of merchandise purchased and two-thirds of operating expenses will be paid for in the quarter in which the purchase is made, and the balance in the following quarter. • The ending inventory of each quarter should be equal to one-third of the amount of estimated cost of sales for the coming quarter. • An additional $22,500 equipment investment will have to be made at the end of the second quarter to handle the increased sales volume expected in the third quarter. Required: a. Prepare a cash budget for the first and second quarters. b. Assuming that a minimum cash balance of $5,000 is desired at all times, what steps would you advise Terry s Equipment Center to take at the end of each of the first two quarters? Problem 24-2 Terry s Equipment Center has been organized to sell a line of lawn and garden equipment. The company began operations on January 1 with the following assets: Sales for January, February, and March (i.e., the first quarter) are expected to be $140,000; they are expected to be $280,000 for the next three months, and $325,000 for the three months after that. Certain expenses are expected to vary with