Beginning cash balance Cash collections from customers Collection of note receivable Zip Power Cash Budget October and November Cash available before financing Cash payments: Purchases of inventory Operating expenses Total payments Ending cash balance before financing Minimum cash balance desired Cash excess (deficiency) Total effect of financing Ending cash balance October November 11500 15800 Additional information Management forecasts that collections from credit customers will be $11,500 in October and $15,800 in November. The store is scheduled to receive $5,000 cash on a business note receivable in October. Projected cash payments include inventory purchases ($12,800 in October and $13,400 in November) and operating expenses ($3,800 each month). Zip Power's bank requires a $9,000 minimum balance in the store's chequing account. At the end of any month when the account balance dips below $9,000, the bank automatically extends credit to the store in multiples of $1,000. Zip Power borrows as little as possible and pays back loans in quarterly instalments of $1,000 plus 2% interest on the entire unpaid principal. The first payment occurs three months after the loan. Print Done