1. Durango Mountain Bike Tours ending cash balance as of December 31, 2022 was $10,000. Its expected cash collections and payments for the next six months are given in the following table.

Month	Collections	Payments
January	$18563	$21825
February	30881	35100
March	51075	48600
April	81844	68344
May	109688	90113
June	141750	107100

1. Calculate the firms expected ending cash balance for each month (Analysis 4 pts).
2. Assuming that the firm must maintain an ending cash balance of at least $12,000, how much must they borrow during each month? (Analysis & Identify and Access Needed Information 8 pts)
3. If the firm must pay 5% annual interest on its short-term borrowing, what are the ending cash balances for each month? (Identify and Access Needed Information 4 pts)
4. What are the ending cash balances if the firm uses any cash in excess of the minimum to pay off its short-term borrowing for each month? (Use Information Effectively to Accomplish a Specific Purpose 4 pts).

D22 A B C D E F G 1 Please complete the yellow highlighted parts. Please show the formulas if the number or figures are not provided in the problem. a) 3 Durango Mountain Bike Tours Forecasted Ending Cash Balance January 2023 to June 2023 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & December & January & February & March & April & May & June \\ \hline Beginning Cash & & 10,000 & 28,563 & 59,444 & 110,519 & 192,363 & 302,051 \\ \hline Add: Collections & & 18,563 & 30,881 & 51,075 & 81,844 & 109,688 & 141,750 \\ \hline Less: Payments & & 21,825 & 35,100 & 48,600 & 68,344 & 90,113 & 107,100 \\ \hline Unadjusted Cash Balance & & 28,563 & 59,444 & 110,519 & 192,363 & 302,051 & 443,801 \\ \hline Ending Cash Balance & 10,000 & 6,738 & 24,344 & 61,919 & 124,019 & 211,938 & 336,701 \\ \hline b) & & & & & & & \\ \hline \end{tabular} Durango Mountain Bike Tours Forecasted Ending Cash Balance January 2023 to June 2023 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & December & January & February & March & April & May & June \\ \hline Beginning Cash & & 12,000 & & & & & \\ \hline Add: Collections & & 18,563 & 30,881 & 51,075 & 81,844 & 109,688 & 141,750 \\ \hline Less: Payments & & 21,825 & 35,100 & 48,600 & 68,344 & 90,113 & 107,100 \\ \hline Unadjusted Cash Balance & & 30,563 & & & & & \\ \hline \multicolumn{8}{|l|}{ Add: Borrowing } \\ \hline Ending Cash Balance & 10,000 & & & & & & \\ \hline & & & & & & & \\ \hline Minimum Cash & 12,000 & & & & & & \\ \hline c) & & & & & & & \\ \hline & & & & & & & \\ \hline \end{tabular} Durango Mountain Bike Tours Forecasted Ending Cash Balance January 2023 to June 2023 \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & December & January & February & March & April & May & June \\ \hline \multicolumn{8}{|l|}{ Beginning Cash } \\ \hline \multicolumn{8}{|l|}{ Add: Collections } \\ \hline \multicolumn{8}{|c|}{ Less: Short-term Interest } \\ \hline \multicolumn{8}{|l|}{ Less: Payments } \\ \hline \multicolumn{8}{|c|}{ Unadjusted Cash Balance } \\ \hline \multicolumn{8}{|l|}{ Add: Borrowing } \\ \hline Ending Cash Balance & 10,000 & & & & & & \\ \hline \end{tabular} Cumulative Borrowing Minimum Cash Annual Interest Rate Monthly Interest Rate d) d)