Cash budgetAdvanced The actual sales and purchases forXenocore, Inc., for September and October 2019 , along with its forecast sales and purchases for the period November 2019 through April 2020 , follow LOADING.... The firm makes 30% of all sales for cash and collects on 35% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $14000 in September and April, $15000 in January and March, and $25000 in February. The firm pays cash for 12% of its purchases. It pays for 55% of its purchases in the following month and for 33% of its purchases 2 months later. Wages and salaries amount to 20% of the preceding month's sales. Rent of $18000 per month must be paid. Interest payments of $12000 are due in January and April. A principal payment of $25000 is also due in April. The firm expects to pay cash dividends of $19000 in January and April. Taxes of $80000 are due in April. The firm also intends to make a $26000 cash purchase of fixed assets in December.

a. Assuming that the firm has a cash balance of $23000 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 $17000 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.

September

Sales $215,000

purchases$123,000

2019

October

251,000

151,000

2019

November

167,000

137,000

2019

December

163,000

99,000

2020

January

144,000

85,000

2020

February

185,000

105,000

2020

March

197,000

104,000

2020

April

251,000

94,000