Complete the cash budget: The beginning cash balance is $95000,$ which is the required minimum cash balance.

Ignore income taxes.

Assume that the direct materials prices, direct labour rates, variable manufacturing rates, and monthly fixed manufacturing costs remain constant in $2023$ and $2024.$ This means, for example, that you can use the product unit cost from $2024$ to determine the beginning finished goods inventory or the direct materials prices from $2024$ to calculate the beginning raw materials inventory.

The balance of Property, Plant, and Equipment, net of depreciation is $$420000$ as of December $31,2023.$

Equity: BestKayak finances its operations with common share equity of $$600000.$ It plans to pay out dividends of $$120000$ in October $2024.$

Use the followng formula to demmtermine the beginning retained earnings balance: Beginning retained earnings $=$ $$95000$ beginning cash balance $+$ Beginning accounts receivable balance $+$ Beginning finished goods balance $+$ Beginning raw materials balance $+$ $$420000$ Property, Plant, and Equipment, net of depreciation $$ Beginning accounts payable balance $-$ $$200000$ beginning long$-$term liabilities $-$ $$600000$ beginning common shares balance. Note that the amount of retained earnings is most likely as decimal number $$ do not round it in your Excel sheet.

Long$-$term liabilities: BestKayak finances its operations with an interest$-$bearing long$-$term loan of $$200,000.$ An interest expense of $7\%$ per annum is expected for the long$-$term loan, which is paid monthly. Note that the interest expense for the long$-$term loan is included in the financing section of the cash budget. BestKayak plans to pay back $10\%$ of its long$-$term loan in December, if the cash balance allows for it$.$

Short$-$term financing: In case additional, short$-$term debt is needed, BestKayak has a line of credit available with its bank at an interest rate of $8\%$ per annum. This potential short$-$term loan works as follows: The company will borrow and repay in multiples of $$5000$ from the line of credit. It makes all borrowings from the line of credit at the beginning of a month and makes all repayments at the end of a month. It pays interest only on the portion of the short$-$term loan $($line of credit$)$ that is repaid.