Dorothy Koehl recently leased space in the Southside Mall and opened a new business, Koehl's Doll Shop. Business has been good, but Koehl frequently runs out of cash. This has necessitated late payment on certain orders, which is beginning to cause a problem with suppliers. Koehl plans to borrow from the bank to have cash ready as needed, but first she needs a forecast of how much she should borrow. Accordingly, she has asked you to 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 $4,200 per month, and the rent is $2,800 per month. In addition, she must make a tax payment of $11,000 in December. The current cash on hand (on December 1) is $350, but Koehl has agreed to maintain an average bank balance of $5,500 - this is her target cash balance. (Disregard the amount in the cash 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 $140,000.

Sales Purchases

December $120,000 $35,000

January $36,000 $35,000

February $58,000 $35,000

Prepare a cash budget for December, January, and February. 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:

December January February

Sales (Collections) $120,000 $36,000 $58,000

Purchases $35,000 $35,000 $35,000

Payments for purchases $140,000 $35,000 $35,000

Salaries $4,200 $4,200 $4,200

Rent $2,800 $2,800 $2,800

Taxes $11,000 ---- -----

Total payments $158,000 $42,000 $2,800

Cash at start of forecast $350 ----- ------

Net cash flow -$38,000 -$6,000 -$16,000

Cumulative cash balance -$37,650 _________ __________

Target cash balance $5,500 $5.500 $5,500

Surplus cash or loans needed -$43,150 __________ __________

*** ONLY NEED THE BOLD QUESTIONS- CUMULATIVE CASH BALANCE AND SURPLUS CASH LOANS NEEDED- FOR JANUARY AND FEBRUARY***

Thank you in advance :)