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 . The firm makes 24% of all sales for cash and collects on 38% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $12,000 in September and April, $17,000 in January and March, and $27,000 in February. The firm pays cash for 8% of its purchases. It pays for 53% of its purchases in the following month and for 39% of its purchases 2 months later. Wages and salaries amount to 19% of the preceding month's sales. Rent of $18,000 per month must be paid. Interest payments of $11,000 are due in January and April. A principal payment of $31,000 is also due in April. The firm expects to pay cash dividends of $20,000 in January and April. Taxes of $75,000 are due in April. The firm also intends to make a $26,000 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 $15,000 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. 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.) Oct Nov Xenocore, Inc. Sept 208,000 $ $ 250,000 $ $ $ 173,000 More info Forecast sales Cash sales Collections Lag 1 month Lag 2 month Other cash receipts Total cash receipts $ (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) $ $ $ Forecast Purchases $ 121,000 $ 153,000 $ 135,000 Year 2019 2019 2019 2040 2019 2020 2020 2020 2020 Month September October November December January February March April Sales $208,000 250,000 173,000 159,000 140,000 176,000 196,000 253,000 Purchases $121,000 153,000 135,000 99,000 82,000 114,000 98,000 86,000 $ Cash purchases Payments Lag 1 month Lag 2 month Salaries and wages Rent $ $ $ S $ $ $ Print Done Interest payments Principal payments $ Dividends Taxes $ Purchases of fixed assets $ $ Total cash disbursements Net cash flow S Add: Beginning cash S $ Ending cash $
