4G 12:11 Question Nine Kivukoni Trading Company wishes to arrange overdraft facilities with its bankers during the period January to June 2020, when it will be manufacturing mostly for stock. 1) The projected sales are given below: TZS 000 November 2019 20,000 December 2019 20,000 January 2020 40,000 February 2020 60,000 March 2020 80,000 April 2020 40,000 May 2020 40,000 20,000 June 2020 2) Payment from credit sales are made as follows: 30% of all sales in the month of sales. 9 50% the first month after the month of sales, and 20% the second month after the month of sales No bad debts are anticipated. 3) All sales are made on terms 2/10 net 30. And that all payments received in the month of sale qualify for discount. 4) Purchases of material amounting to 80% of sales, and are acquired a month before the company expects to sell the products. Purchases payment is delayed for one month. 5) The company expects to make tax payment of TZS 5 million on 31st March 2020. 6) Wages and salaries amounts to 5% of the monthly purchases figure. 7) Rent is TZS 200,000 per month. 8) The company will have cash balance of TZS 5.5 million on 1st January, 2020, and that, the company needs to maintain a minimum desired cash balance of TZS 18 million per month. 9) The company also intends to acquire-a-new-plant for its production process that will cost TZS 45 million. This payment will be made as follows: Required: TZS 25 million on 15th January, 2020 TZS 10 million on 20th March, 2020 TZS 10 million on 30th May, 2020 What are the Company's financial requirements for the period January to June 2020