Hi there! I am just having some issues grasping the concept of Profit Budget and Cash Forecast in Managerial Accounting and was wondering if anyone could help. My professor suggested a scenario that I should practice with, but I am still having troubles understanding it completely. Here is the scenario:Creassos Ltd. was formed in July 2012 with $20,000 of capital. $7,500 of this was used to purchase equipment. The owner budgeted for the following:Wages and other expenses are paid in cash. In addition to the above, depreciation is $2,400 per year.No inventory is held by the company.What I need to understand is a. How to Calculate the profit for each of the three months from July through September and the totalprofit for the three months.b. How to Calculate the cash balance at the end of each month.c. How to create a Statement of Financial Position at the end of September.Receipts ofAccountsPayments onOtherSalesReceivablePurchasesAccounts PayableWagesExpensesJuly$20,000$ 8,000$ 5,000$3,000$2,000Aug.30,000$20,00015,00010,0004,0002,000Sept.40,00030,00020,00020,0005,0003,000

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