Cash budgetAdvancedThe 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 26% of all sales for cash and collects on 37% of its sales in each of the 2 months following the sale.

Repeat through April

Year Sales 2019 2019 2019 2019 2020 2020 2020 2020 Month September October November December January February March April $215,000 246,000 165,000 157,000 143,000 179,000 203,000 254,000 Purchases $123,000 149,000 144,000 103,000 75,000 112,000 95,000 85,000 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 A. The firm makes 26% of all sales for cash and collects on 37% of its sales in each of the 2 months following the sale. Other cash inflows are expected to be $10,000 in September and April, $17,000 in January and March, and $27,000 in February. The firm pays cash for 9% of its purchases. It pays for 54% of its purchases in the following month and for 37% of its purchases 2 months later. Wages and salaries amount to 21% of the preceding month's sales. Rent of $20,000 per month must be paid. Interest payments of $12,000 are due in January and April. A principal payment of $29,000 is also due in April. The firm expects to pay cash dividends of $19,000 in January and April. Taxes of $80,000 are due in April. The firm also intends to make a $23,000 cash purchase of fixed assets in December. a. Assuming that the firm has a cash balance of $24,000 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. Xenocore, Inc. Sept Oct Nov Forecast sales 215,000 $ 246,000 $ 165,000 Cash sales $ Collections $ FA Lag 1 month Lag 2 month FA $ Other cash receipts Total cash receipts $ Forecast Purchases 123,000 $ 149,000 $ 144,000 Cash purchases $ Payments Lag 1 month Lag 2 month $ $ Salaries and wages $ $ Rent Interest payments Principal payments $ Dividends $ Taxes $ 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. Complete the table below: (Round to the nearest dollar.) Xenocore, Inc. Nov Dec Jan Feb Mar Apr Ending cash Minimum cash balance 15,000 15,000 15,000 15,000 15,000 15,000 Required total financing $ $ $ $ Excess cash balance to cover the maximum borrowing needs for the month of (Round to the nearest dollar. Type the full name of the month, c. The line of credit should be at least $ e.g., February.)