2018 (Ost through a. Using the information provided, construct a monthly cash budget for October through December 2017. Based on your analysis, will Noble enjoy a surplus of cash, or require external financing? 32 NOBLE EQUIPMENT CORP. Facts and assumptions Sales (20 percent for cash, the rest on 30-day credit terms): 2017 Actual 2017 Projected July August September October November December 76,000 88,000 266,000 125,000 51,000 53,000 Purchases (all on 60-day terms): 2017 Actual 2017 Projected July August September October November December 116,000 122,000 257,000 62,000 27,000 26,000 Salaries payable monthly Principal payment on debt due in December 20,000 25,700 Interest due in December 9,000 Dividend payable in December 15,000 Taxes payable in November 19,000 Addition to accumulated depreciation in December 4,000 Cash balance on October 1, 2017 34,000 Minimum desired cash balance 15,000 ENT CODD + NOBLE EQUIPMENT CORP. INCOME STATEMENT (S thousands) Fiscal year ended September 30, 2017 Net sales 1.581.6 Cost of goods sold 1.098.0 Gross profits 483.6 Selling and administrative expenses 240.0 Interest expense 18.0 3 Depreciation 16.0 Net profit before tax 209.6 Tax at 33% 69.2 Net profit after tax 140.4 BALANCE SHEET (S thousands) September 30, 2017 Assets Cash 34.0 Accounts receivable 212.8 Inventory 425.0 Total current assets 671.8 Gross fixed assets 135.0 Accumulated depreciation 52.0 Net fixed assets 83.0 Total assets 754.8 Liabilities Bank loan 0.0 Accounts payable 379.0 Accrued expenses 55.0 Current portion long-term debt 25.7 Taxes payable 56.0 Total current liabilities 515.7 Long-term debt 120.0 Shareholders' equity 119.1 Total liabilities and equity 754.8 4 Cost of goods sold consists entirely of items purchased during the quarter. Selling and administrative expenses consist entirely of salaries. Depreciation is straight-line at the rate of $4,000 per quarter. Accrued expenses are not expected to change in the last quarter. $25.7 due December 2017. No payments for remainder of year