$=1$

$\backslash$table$[[,],[,$moonino$],[,=0$

Cash budgetAdvanced The actual sales and purchases for Xenocore, Inc., for September and October 2019, along with its forecast sales and purchases for the period November 2019 through April 2020, follow O The firm makes 16% of all sales for cash and collects on 42% of its sales in each of the 2 months following the sale Other cash inflows are expected to be SIO,OOO in September and April, Sl 7,000 in January and March. and S28.000 in February. The firm pays cash for 12% of its purchases. It pays for 48% of its purchases in the following month and for 40% of its purchases 2 months later Wages and salaries amount to 22% of the preceding month's sales. Rent of S19,000 per month must be paid. Interest payments of S9.OOO are due in January and April, Aprincipal payment of $29,000 is also due in April. The firm expects to pay cash dividends of S18,OOO in January and April. Taxes of $83,000 are due in April The firm also intends to make a $25,000 cash purchase of fixed assets in December a. Assuming that the firm has a cash balance of S23,000 at the beginning of November. determine the end-of-month cash balances for each month. November through April. b. Assuming that the firm wishes to maintain a S15.000 minimum cash balance. determine the required total financing or excess cash balance for each month, November through April. c. If the firm were requesting a line of credit to cover needed financing for the period November to April. how large would this line have to be? Explain your answer Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases Cash purchases Payments Lag 1 month Lag 2 month Salaries and wages Rent Interest payments Principal payments Dividends Taxes Purchases of fixed assets Total cash disbursements Net cash flow Add: Beginning cash Endina cash s s 213,000 s 125,000 s 245,000 $ 155,000 s 173,000 141,000 More info (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 2019 2019 2019 2019 2020 2020 2020 2020 Month September October November December January February March April print Sales S213,ooo 245,000 173,000 165.000 145.000 185,000 196,000 251 .ooo Done Purchases S125.ooo 155,000 141 ,ooo 102.000 75.000 109,000 100,000 87 .ooo