Cash Budgeting

prepare a cash budget for the critical period around Christmas, when needs will be especially high.

Sales are made on a cash basis only. Koehl's purchases must be paid for during the following month. Koehl pays herself a salary of $$4,100$ per month, and the rent is $$1,600$ per month. In addition, she must make a tax

register, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.$)$

The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $$150,000.$

a$.$ Prepare a cash budget for December, January, and February. For each month report the amount that must be borrowed or the amount of the surplus. Do not round intermediate calculations. Round your answers to the

nearest dollar. Negative values, if any, should be indicated by a minus sign.

Collections and Purchases:

b$.$ Suppose that Koehl starts selling on a credit basis on December $1,$ giving customers $30$ days to pay. All customers accept these terms, and all other facts in the problem are unchanged. What would the company's loan

requirements be at the end of December in this case? $($Hint; The calculations required to answer this part are minimal.$)$ Do not round intermediate calculations. Round your answer to the nearest dollar,

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