8. The treasurer of Westmark Industrial, Inc., a wholesale distributor of household appliances, wants to estimate his companys cash bal- ances for the first three months of 2015. Using the information below, construct a monthly cash budget for Westmark for January through March 2015. Westmarks sales are 20 percent for cash, with the rest on 30-day credit terms. Its purchases are all on 60-day credit terms. Does it appear from your results that the treasurer should be concerned about investing excess cash or looking for a bank loan?

Westmark Industrial, Inc. Selected Information ($ thousand)

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2014 (Actual) 2015 (Projected)

October November. December. January February March

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Sales 360 420 1,200 600 240 240

Purchases 510 540 1,200 300 120 120

Wages payable monthly 180

Principal payment on debt due in March 210

Interest due in March 90

Dividend payable in March 300

Taxes payable in February 180

Addition to accumulated depreciation in March 30

Cash balance on January 1, 2015 300

Minimum desired cash balance 150