Bill and Fiona have decided that they must maintain a minimum monthly cash balance of USD 25,000, representing approximately one month of payroll expenses. Thus, they have obtained a small line of credit from a family friend who also happens to be an angel investor. The line of credit has a maximum borrowing limit of USD 100,000 with an annual interest rate of 19% paid on any outstanding balance. Interest is due and paid each month following any month with an outstanding balance. In addition, if there is cash in excess of USD 25,000 at the end of any month, the outstanding balance on the line of credit will be paid until either the company has hit the USD 25,000 minimum or the loan is paid in full.

The couple has estimated the total cost of opening the brewery at USD 1,000,000. Of this total, USD 150,000 will be used for opening-day working capital or beginning cash balance, with the remaining USD 850,000 used for leasehold improvements, machinery, equipment, and other capital expenditures. Including certain state incentives, Rusty Bucket Brewing Co. LLC believes they will be able to obtain an SBA-guaranteed loan from the bank for USD 750,000. The estimated terms of the note indicate that the monthly payment will be approximately USD 7,300 each month, split between principal payments and interest expense at approximately USD 5,000 and USD 2,300 each month, respectively. In addition, Bill and Fiona have gathered USD 250,000 of their own money from savings, friends, and family, which will be contributed to the business as their beginning owners equity. In the remaining tabs of Phase I, you will complete the sales, purchases, and wages schedules as well as the corresponding cash budget. Please complete the tabs labeled Phase ISchedules and Phase ICash Budget in Excel.

I cannot figure out the last section on Financing, Less: Loan Repayments, Less: Interest, Add: New Borrowings, etc.

Cash Budget May June July August September October 150,000 195,750 291,625 394,425 499,350 604,538 Beginning cash balance Cash receipts: Collections from customers Cash available before disbursements 45,750 195,750 95,875 291,625 102,800 394,425 104,925 499,350 105,188 604,538 104,888 709,425 91,500 21,240 16,500 100,250 23,600 16,500 105,350 24,780 16,500 104,500 25,370 16,500 105,875 24,190 16,500 103,900 25,370 16,500 10,000 Cash disbursements: Purchases Payroll (incl taxes and benefits) Rent Real Estate Taxes Professional Fees Utilities Insurance Maintenance Supplies Licenses Advertising Total disbursements 5,000 1,500 5,000 1,500 1,500 1,500 1,500 5,000 1,500 4,800 625 750 250 1,650 143,815 625 750 625 750 250 1,650 150,125 625 750 250 1,650 156,405 625 750 250 1,650 151,145 250 1,650 151,340 625 750 250 1,650 160,545 Cash balance before financing Less minimum cash balance desired 51,935 (25,000) 141,500 (25,000) 238,020 (25,000) 348,205 (25,000) 453,198 (25,000) 548,880 (25,000) 26,935 116,500 213,020 323,205 428,198 523,880 7,300 Total cash requirements before financing Financing: Less: Loan Repayments Less: Interest Add: New Borrowings Total effects of financing - Cash balance