b$.$ Prepare monthly estimates of the required financing or excess funds$-$that is$,$ the amount of money Bowers will need to borrow or will have available to invest. Required financing, if any, should be indicated by a minus sign.

$\backslash$table$[[,\backslash$table$[[$Required financing or$],[$excess funds$]],],[$July$,$$$,],[$August$,$$$,],[$September$,$$$,],[$October$,$$$,],[$November$,$$$,],[$December$,$$$,]]$

c$.$ Now suppose receipts from sales come in uniformly during the month $($that is$,$ cash receipts come in at the rate of $\frac{1}{30}$ or $\frac{1}{31}$ each day$),$ but all outflows must be paid on the $5$th$.$ Will this affect the cash budget? That is$,$ will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects.

In a situation, where inflows and outflows are not synchronized during the month, it $|$ likely to be possible to use a cash budget centered on the end of the month. To make a valid estimate of the peak financing requirements, the company

d$.$ Bowers' sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the company's current and debt ratios would vary during the year if all financial requirements were met with short$-$term bank loans. Could changes in these ratios affect the firm's ability to obtain bank credit? Explain.

The months preceding peak sales would show $$ current ratio and $$ debt$-$to$-$capital ratio due to additional short$-$term bank loans. In the following months as receipts are collected from sales, the current ratio would $$ and the debtto$-$capital ratio would $$ Abnormal changes in these ratios affect the firm's ability to obtain bank credit.