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Retail outlets purchase snowboards from Slopes, Inc., throughout the year. However, in anticipation of late summer and early fall purchases, outlets ramp up inventories from May through August. Outlets are billed when boards are ordered. Invoices are payable within 60 days. From past experience, Slopes' accountant projects \(20 \%\) of invoices will be paid in the month invoiced, \(50 \%\) will be paid in the following month, and \(30 \%\) of invoices will be paid two months after the month of invoice. The average selling price per snowboard is \(\$ 450\). To meet demand, Slopes increases production from April through July, because the snowboards are produced a month prior to their projected sale. Direct materials are purchased in the month of production and are paid for during the following month (terms are payment in full within 30 days of the invoice date). During this period there is no production for inventory, and no materials are purchased for inventory. Direct manufacturing labor and manufacturing overhead are paid monthly. Variable manufacturing overhead is incurred at the rate of \(\$ 7\) per direct manufacturing labor-hour. Variable marketing costs are driven by the number of sales visits. However, there are no sales visits during the months studied. Slopes, Inc., also incurs fixed manufacturing overhead costs of \(\$ 5,500\) per month and fixed nonmanufacturing overhead costs of \(\$ 2,500\) per month. The beginning cash balance for July \(1,2012,\) is \(\$ 10,000.0 n\) 0ctober \(1,2011,\) Slopes had a cash crunch and borrowed \(\$ 30,000\) on a \(6 \%\) one- year note with interest payable monthly. The note is due October 1,2012 Using the information provided, you will need to determine whether Slopes will be in a position to pay off this short-term debt on 0 ctober 1,2012. 1\. Prepare a cash budget for the months of July through September 2012. Show supporting schedules for the calculation of receivables and payables. 2\. Will Slopes be in a position to pay off the \(\$ 30,000\) one-year note that is due on 0 ctober \(1,2012 ?\) If not what actions would you recommend to Slopes' management? 3\. Suppose Slopes is interested in maintaining a minimum cash balance of \(\$ 10,000\). Will the company be able to maintain such a balance during all three months analyzed? If not, suggest a suitable cash management strategy.