Assume the cash balance at November 1 will be $71,000. It is the company's policy to maintain a minimum cash balance of $60,000 at the end of each month. Cash receipts (from cash sales and collection of accounts receivable) are projected to be $504,000 for November and $457,000 for December Cash disbursements (sales commissions, advertising, delivery expense, wages, utilities, etc.) prior to financing activity are scheduled to be $428.400 in November and $536,000 in December Short-term borrowing, when needed, is done at the beginning of the month in increments of $1.000. The annual interest rate on any such loans is estimated to be 12%. Interest on any outstanding short-term loans is paid in cash at the end of the month Repayments of principal (if any) are assumed to occur at the end of the month. As of November 1, the company has a $60,000 long-term loan from the local bank. This loan, including interest (at 12% per year for the month of November, is payable at the end of November Required: Use the preceding information to prepare the cash budget for November and December. (Hint: The December 31 cash balance should be $60,460) (Amounts to be deducted should be entered with a minus sign.) rences Hartz & Co. Cash Budget For November and December November December Cash balance, beginning $ 71.000 Add Cash receipts 504000 457.000 Total cash available 575.000 457.000 Cash disbursements prior to financing 428.400 536.000 'Add: Minimum cash balance 60 000 50.000 Total cash needed 488.400 596.000 Excess (deficiency of) cash before financing effects Financing Short-term borrowing, beginning of month Repayments (long term loan principal), end of month 50.000 0 Cash Interest, and of month Total effects of financing (50,000) Ending cash balance 5 86.500 5 79.000) Me GE H