Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately $30,000 a month. Lease payments under long-term leases are $10,000 a month. Depreciation charges are $40,000 a month. Miscellaneous expenses are $1,500 a month. Income tax payments of $71,000 are due in September and December. A progress payment of $170,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $140,000, and a minimum cash balance of $90,000 should be maintained throughout the cash budget period. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to the nearest dollar. If your answer is zero, enter " 0 ". x Download spreadsheet Cash Budgetin neqative cumulative cash, and cumulative loans outstanding, if any, should be indicated by a minus sian. financing, if any, should be indicated by a minus sign. of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. In a situation, where inflows and outflows are not synchronized during the ms To make a valid estimate of the peak financing requirements, the company Ise a cash budget centered on the end of the month. debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firm's ability to obtain bank credit? Explain. The months preceding peak sales would show V current ratio and following months as receipts are collected from sales, the current ratio would 1 affect the firm's ability to obtain bank credit. ratis debt-to-capital ratio due to additional short-term bank loans. In the and the debt-to-capital ratio would Abnormal changes in these required loan. Do a sensitivity analysis that shows the effects of these two factors on the maximum loan requirement. Enter your answers as positive numbers. To complete the sensitivity analysis, follow these steps in excel: - Ensure that cell A60 is a reference to cell B56 (i,e. " =B56 ). - Select/highlight cells A60 through H69 (A60:H69). - From the top ribbon, select Data > Forecast > What-If-Analysis > Data Table - For row input cell click on cell B5 or enter $B$5 - For column input cell click on cell B14 or manually enter $B$14 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately $30,000 a month. Lease payments under long-term leases are $10,000 a month. Depreciation charges are $40,000 a month. Miscellaneous expenses are $1,500 a month. Income tax payments of $71,000 are due in September and December. A progress payment of $170,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $140,000, and a minimum cash balance of $90,000 should be maintained throughout the cash budget period. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to the nearest dollar. If your answer is zero, enter " 0 ". x Download spreadsheet Cash Budgetin neqative cumulative cash, and cumulative loans outstanding, if any, should be indicated by a minus sian. financing, if any, should be indicated by a minus sign. of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. In a situation, where inflows and outflows are not synchronized during the ms To make a valid estimate of the peak financing requirements, the company Ise a cash budget centered on the end of the month. debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firm's ability to obtain bank credit? Explain. The months preceding peak sales would show V current ratio and following months as receipts are collected from sales, the current ratio would 1 affect the firm's ability to obtain bank credit. ratis debt-to-capital ratio due to additional short-term bank loans. In the and the debt-to-capital ratio would Abnormal changes in these required loan. Do a sensitivity analysis that shows the effects of these two factors on the maximum loan requirement. Enter your answers as positive numbers. To complete the sensitivity analysis, follow these steps in excel: - Ensure that cell A60 is a reference to cell B56 (i,e. " =B56 ). - Select/highlight cells A60 through H69 (A60:H69). - From the top ribbon, select Data > Forecast > What-If-Analysis > Data Table - For row input cell click on cell B5 or enter $B$5 - For column input cell click on cell B14 or manually enter $B$14