a. Cash collections from sales in July, August, and September, are projected to be $91,000,$154,000, and $124,000 respectively. b. Cash payments for the upcomingthird quarter are projected to be $148,000 in July, $100,000 in August, and $139,000 i September. c. The cash balance as of the first day of the third quarter is projected to be $37,000. d. Woodland Manufacturing has a policy that they must maintain a minimum cash balance of $25,000. The company has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have a minimum balance of $25,000. If the company has more than $25,000 at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month. Woodland Manufacturing pays interest on the prior month's line of credit ending balance. The actual interest rate that Woodland Manufacturing will pay floats since it is tied to the prime rate. However, the interest rate paid during the budget period is expected to be 3% of the prior month's line of credit ending balance (If the company did not have an outstanding balance at the end of the prior month, then Woodland Manufacturing does not have to pay any interest). All line of credit borrowings are taken or paid off on the first day of the month. As of the first day of the third quarter, Woodland Manufacturing did not have a balance on its line of credit. Woodland Manufacturing Combined Cash Budget For the Months of July through September Beginning balance of cash Cash collections Total cash available Cash payments Ending cash balance before financing Financing Borrowings Repayments Interest Payments Ending cash balance