Cash budgetAdvanced The actual sales and purchases for Xenocore, Inc., for September and October , along with its forecast sales and purchases for the period November through April , follow LOADING.... The firm makes of all sales for cash and collects on of its sales in each of the 2 months following the sale. Other cash inflows are expected to be in September and April, in January and March, and in February. The firm pays cash for of its purchases. It pays for of its purchases in the following month and for of its purchases 2 months later. Wages and salaries amount to of the preceding month's sales. Rent of per month must be paid. Interest payments of are due in January and April. A principal payment of is also due in April. The firm expects to pay cash dividends of in January and April. Taxes of are due in April. The firm also intends to make a cash purchase of fixed assets in December.

a. Assuming that the firm has a cash balance of at the beginning of November, determine the end-of-month cash balances for each month, November through April.

b. Assuming that the firm wishes to maintain a minimum cash balance, determine the required total financing or excess cash balance for each month, November through April.c. If the firm were requesting a line of credit to cover needed financing for the period November to April, how large would this line have to be? Explain your answer.

	Xenocore, Inc.
	Sept		Oct		Nov
Forecast sales	$	215,000	$	251,000	$	167,000
Cash sales					$	50100
Collections
Lag 1 month					$
Lag 2 month					$
Other cash receipts					$
Total cash receipts					$
Forecast Purchases	$	123,000	$	151,000	$	137,000
Cash purchases					$
Payments
Lag 1 month					$
Lag 2 month					$
Salaries and wages					$
Rent					$
Interest payments					$
Principal payments					$
Dividends					$
Taxes					$
Purchases of fixed assets					$
Total cash disbursements					$
Net cash flow					$
Add: Beginning cash					$
Ending cash					$