Cash budget-Advanced The actual sales and purchases for Xenocore, Inc., for September and October 2019, along with its forecast sales and purchases for the period November 2019 through April 2020, follow i. The firm makes 20% of all sales for cash and collects on 40% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $13,000 in September and April, S16,000 in January and March, and $29,000 in February. The firm pays cash for 12% of its purchases. It pays for 53% of its purchases in the following month and for 35% of its purchases 2 months later. Wages and salaries amount to 21% of the preceding month's sales. Rent of $21,000 per month must be paid. Interest payments of $10,000 are due in January and April. A principal payment of $32,000 is also due in April. The firm expects to pay cash dividends of $22,000 in January and April. Taxes of $83,000 are due in April. The firm also intends to make a $25,000 cash purchase of fixed assets in December. a. Assuming that the firm has a cash balance of $21,000 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 $16,000 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. More Info - X (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year Month Sales Purchases 2019 September $215,000 $124,000 2019 October 250,000 146,000 2019 November 166,000 141,000 2019 December 157,000 99,000 2020 January 143,000 80,000 2020 February 181,000 114,000 2020 March 198,000 104,000 2020 April 254,000 87,000 a. Assuming that the firm has a cash balance of $21,000 at the beginning of November, determine the end-of-month cash balances for each month, November through April Complete the November cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Xenocore, Inc. Sept Oct Nov Forecast sales $ 215,000 $ 166.000 250,000 $ $ Cash sales Collections $ Lag 1 month Lag 2 month $ $ $ 146,000 $ $ 124.000 $ 141,000 $ Other cash receipts Total cash receipts Forecast Purchases 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 $ Complete the December cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Oct Xenocore, Inc. Nov 250,000 $ 166,000 $ Dec 157,000 $ $ A $ 146,000 $ 141,000 $ 99,000 Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases 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 $ $ $ $ $ $ $ $ Complete the January cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Xenocore, Inc. Nov Dec Jan 166,000 $ 157,000 $ 143,000 $ $ A $ $ Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases Cash purchases Payments Lag 1 month Lag 2 month Salaries and wages GA GA 141,000 $ 99,000 $ 80,000 $ $ Rent $ $ $ Interest payments Principal payments Dividends Taxes Purchases of fixed assets Total cash disbursements Net cash flow Add: Beginning cash Ending cash $ $ $ $ Complete the February cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Xenocore, Inc. Dec Jan 157,000 $ 143,000 $ Feb $ 181,000 GA $ GA $ $ 99,000 $ 80,000 $ 114,000 $ GA Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases 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 $ $ $ $ $ $ $ $ $ Complete the March cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Xenocore, Inc. Jan Feb 143,000 $ 181,000 $ Mar 198,000 $ $ $ $ A $ 114,000 $ A 80,000 $ 104,000 $ $ Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases 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 $ 6 67 $ $ $ $ $ HA Complete the April cash budget for Xenocore, Inc. below: (Round to the nearest dollar.) Xenocore, Inc. Feb Mar 181,000 $ 198,000 $ Apr 254,000 $ A A $ $ A $ 114,000 $ 104,000 $ 87,000 $ $ Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts Forecast Purchases 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 $ $ $ $ $ $ $ GA $ b. Assuming that the firm wishes to maintain a $16,000 minimum cash balance, determine the required total financing or excess cash balance for each month, November through April. Complete the table below: (Round to the nearest dollar.) Xenocore, Inc. Nov Dec Jan Feb Mar Apr Ending cash $ $ $ Minimum cash balance 16,000 16,000 16,000 16,000 16,000 16,000 Required total financing S $ $ $ $ Excess cash balance c. The line of credit should be at least $ to cover the maximum borrowing needs for the month of (Round to the nearest dollar. Type the full name of the month, e.g., February.)