Cash Budget Case Study Leonard & Associates Financial Planners have forecasted revenues for the first six months of 20x2, as shown in the following table: Month November 20X1 December 20x1 January 20x2 February 20x2 March 20x2 April 20x2 May 20x2 June 20x2 Revenue $48,000 45,000 25,000 27,000 30,000 38,000 40,000 45,000 The firm collects 60% of its sales immediately, 39% one month after the sale, and 1% are written off as bad debts two months after the sale. Wages and benefits paid to clerical personnel are expected to be $7,000 per month while commissions to sales associates average 25% of total collections. The two key partners are paid $5,000 per month or 20% of total collections, whichever is greater. Sales commissions and partner compensation are paid one month after the revenue is collected. Rent expense for their office space is $3,500 per month, and monthly lease expenses for their office equipment is $800. Utilities average $250 per month, except in May and June when they average only $150. The ending cash balance in December 20x1 was $12,000. The firm is required to maintain a minimum cash balance of $10,000 every month. 1) Create a Cash Budget for January to June 20x2. 2) The firm is considering obtaining a line of credit from their bank. Based on the Cash Budget, what is the minimum amount that would be necessary? (Round your answer up to the next highest $1,000.)