Assumptions: The firm makes 20% of all sales for cash & collects 40% of its sales in each of the 2 months following the sale 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 $15,000 must be paid monthly Interest payments of $10,000 are due in January and April. A principal payment of $55,000 is due in April The firm expects to pay cash dividends of $20,000 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; 2020 2021 Sep Oct Nov Dec Jan Feb Mar Apr Sales 210,000 250,000 170,000 160,000 140,000 180,000 200,000 250,000 Purchases 120,000 150,000 140,000 100,000 80,000 110,000 100,000 90,000 Prepare a cash budget for Carl's Costumes by completing the format laid out below and incorporating the above assumptions, highlighting your answers to the following: a) Assuming that the firm has a cash balance of $22,000 at the beginning of November, determine the end-of-month cash balances for each month, November through April. b) Assuming that the firm wants to maintain a $15,000 minimum cash balance, determine the required total financing or excess cash balance for each month, November through April. c) If Carl 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? 2020 Nov 2021 Mar Sep Oct Dec Jan Feb Apr Sales Cash rec. 1 month 2 months Other rec. Total Rec. Purchases Cash 1 month 2 months Wages Rent Interest Principal Dividends Taxes FIA purch. Total disp. Receipts Disburs. Net CF Beg, Cash End Cash Min Bal. Req. Fin. Excess