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Assumptions: Other cash inflows are expected to be $12,000 in September and April, $15,000 in January and March, and $27,000 in February The firm pays
Assumptions: Other cash inflows are expected to be $12,000 in September and April, $15,000 in January and March, and $27,000 in February The firm pays cash for 10% of its purchases, 50% one month later and 40% after 2 months. Wages and salaries amount to 20% of the preceding month's sales Rent of $20,000 must be paid monthly Interest payments of $25,000 are due in January and April. A principal payment of $30,000 is due in April The firm expects to pay cash dividends of $30,000 in January and April Taxes of $80,000 are due in April The firm also intends to make a $25,000 cash purchase of fixed assets in December Sales and puchases by month are expected to be as follows; Sales Purchases c) If Bubba were going to request a line of credit at the bank to cover financing for the period November to April, how large would this line have to be
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