a. Using the information provided, construct a monthly cash budget for October through December 2021. Based on your analysis, will Noble enjoy a surplus of cash, or require external financing? b. Construct a pro forma income statement for the first fiscal quarter of 2022 (Oct. through Dec. 2021) and a pro forma balance sheet as of December 31, 2021. What is your estimated external funding required for December 31 ? c. Does the December 31, 2021 estimated external financing equal your cash surplus (deficit) for this date from your cash budget? d. Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2021. NOBLE EQUIPMENT CORP. Facts and assumptions Sales ( 20 percent for cash, the rest on 30-day credit terms): \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ 2021 Actual } & \multicolumn{3}{c|}{ 2021 Projected } \\ \hline July & August & September & October & November & December \\ \hline 76,000 & 88,000 & 266,000 & 125,000 & 51,000 & 53,000 \\ \hline \end{tabular} Purchases (all on 60-day terms): Salaries payable monthly Principal payment on debt due in December Interest due in December Dividend payable in December Taxes payable in November Addition to accumulated depreciation in December Cash balance on October 1, 2021 Minimum desired cash balance 20,00025,7009,00015,00019,0004,00034,00015,000 NOBLE EQUIPMENT CORP. INCOME STATEMENT (\$ thousands) Fiscal year ended September 30, 2021 \begin{tabular}{|r|r} \hline Net sales & 1,581.6 \\ \hline Cost of goods sold1 & 1,098.0 \\ \hline Gross profits & 483.6 \\ \hline Selling and administrative expenses 2 & 240.0 \\ \hline Interest expense & 18.0 \\ Depreciation 3 & 16.0 \\ \hline Net profit before tax & 209.6 \\ Tax at 33\% & 69.2 \\ \hline Net profit after tax & 140.4 \\ \hline \end{tabular} BALANCE SHEET (\$ thousands) September 30, 2021 \begin{tabular}{|l|r|} \hline Assets & \\ \hline Cash & 34.0 \\ \hline Accounts receivable & 212.8 \\ \hline Inventory & 425.0 \\ \hline Total current assets & 671.8 \\ \hline Gross fixed assets & 135.0 \\ \hline Accumulated depreciation & 52.0 \\ \hline Net fixed assets & 83.0 \\ \hline Total assets & 754.8 \\ \hline Liabilities & \\ \hline Bank loan & \\ \hline Accounts payable & 0.0 \\ \hline Accrued expenses & \\ \hline Current portion long-term debt & \\ \hline Taxes payable & 379.0 \\ \hline Total current liabilities & 55.0 \\ \hline Long-term debt & 25.7 \\ \hline Shareholders' equity & 56.0 \\ \hline Total liabilities and equity & 515.7 \\ \hline \end{tabular} 1 Cost of goods sold consists entirely of items purchased during the quarter. 2 Selling and administrative expenses consist entirely of salaries. 3 Depreciation is straight-line at the rate of $4,000 per quarter. 4 Accrued expenses are not expected to change in the last quarter. 5$25.7 due December 2021 . No payments for remainder of year
