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3. Camp and Fevurly Financial Planning have forecasted revenues for the first six months of 2021, as shown in the following table. Month Revenue

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3. Camp and Fevurly Financial Planning have forecasted revenues for the first six months of 2021, as shown in the following table. Month Revenue Month Revenue November 2020 $44,160 March 34,224 December 41,400 April 40,553 January 2021 32,200 May 40,755 February 32,788 June 41,400 The firm collects 70% of its sales immediately, 29% one month after the sale, and 1% are written off as bad debts two months after the sale. The firm assumes that wages and benefits paid to clerical personnel will be $9,125 per month while commissions to sales associates average 25% of collectable sales. Each of the two partners is paid $5,000 per month or 20% of net sales, whichever is greater. Com- missions and partner salaries are paid one month after the revenue is earned. Rent expense for their office space is $4,750 per month, and lease expense for office equipment is $920. Utilities average $288 per month, except in May and June when they average only $173. The ending cash balance in December 2020 was $12,000. C. Create three scenarios (best case, base case, and worst case) assuming that revenues are 10% better than expected, exactly as expected, or 10% worse than expected. What is the maximum that the firm would need to borrow to maintain its minimum cash balance in all three cases? Use the Scenario Manager, and create a summary of your results. Would this change your answer in part b?

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