develop aSix-month Cash Budget (from October 2019 to March 2020) (1) arrange for a short-term borrowing agreement with the bank; (2) decide the best schedule for the large capital expenditure. The following is the available data for the problem.

1.Actual and expected sales data are given in the following table.

Sep/ 2019 Oct/ 2019 Nov/ 2019 Dec/ 2019 Jan/2020 Feb/2020 Mar/2020 Apr/2020

$568,000 $575,000 $598,000 $618,000 $632,000 $650,000 $667,000 $681,000

2.Sales: 60% cash, 40% collected in the following month.

3.Inventory = 58% of the sale in following month.

4.Inventory payments: 60% of inventory is paid for in the month of delivery, 40% is paid one month later.

5.Wages = 25% of the sales in the previous month.

6.Monthly interest payments = $15,000.

7.Principal payments $25,000 in November 2019 and February 2020

8.Dividend = $28,000 in October 2019 and January 2020

9.Taxes, $25,000 in December 2019, and $28,000 in March 2020

10.Capital expenditure scheduled in November 2019: $300,000, but the schedule is flexible and may be changed.

11.In September 2019, the ending cash balance is $38,000.

12.Minimum Cash Balance = $50,000