1. The financial staff at The Right Target, Inc., a research marketing and consulting firm, is working on a cash budget for July to December 2011. The staff has projected the following cash collections and payments: Month Collections Payments Cash Sales Credit Sales Purchases Wages Miscellaneous Expenses July $10,000 $20,000 $15,000 $6000 $1,500 August $12,000 $24,000 $18,000 $7.200 $2,000 September $14.000 $28,000 $21,000 $8.400 $2,500 October $16.000 $32,000 $24,000 $9,600 $3,000 November $20,000 $40,000 $30,000 $12,000 $4,000 December $25,000 $50,000 $37,500 $15,000 $4,500 a. If the ending cash balance as of June 30, 2011 was $10,000, determine the firm's forecasted monthly cash balance. b. The financial staff at The Right Target, Inc. wants to know how much they would need to borrow on a monthly basis if the firm needs a minimum ending cash balance of $30,000 and the average annual interest its short-term borrowing is 7% c. Determine the impact on the ending cash balance if the firm uses any cash surplus above the required minimum cash balance to pay off its short-term borrowing monthly