Fill in the blanks of Table 1: Monthly Cash Outflows and Table 2: Monthly Cash Inflows. Then, use the information to generate Table3: Pro-Forma Cash Flow Budget and answer the following questions. (10 points in total)

Table 1: AgBiz Estimated Monthly Cash Outflows (Jan. Apr.)

Item	Jan	Feb	Mar	Apr
Sales	$8,000		$7,000
Purchases($)	$1,500		$4,000	$5,000
Payment of Account Payable	$7,000	$4,000
Payment of Overhead	$1,000	$1,000	$1,000	$1,000
Total Cash Outflows
Inventory Levels	$5,000

Assumptions:

1. The inventory turnover rate is 12.

2. Inventory is equal to current month's purchases + previous month's purchases

3. Cost of goods sold=25% of sales

4. Account payable turnover ratio=6.

Table 2: AgBiz Estimated Cash Inflows (Jan. Apr. )

Item	Jan	Feb	Mar	Apr
Sales	$8,000		$7,000
Cash Sales ($)			$1,750
Account Receivable (1 month old)	$4,000
Account Receivable (3 month old)	$2,000	$2,000	$1,000
Total Cash Inflows

Assumptions:

1. Sales are 1/4 cash, and 3/4 credits.

2. Account Receivable ratio is 4.

Table 3: Pro-Forma Cash Flow Budget

Item	Jan	Feb	Mar	Apr
Initial Cash Balance	$1,000	$1,000	$1,000	$1,000
Cash Inflow
Total cash available
Cash Outflow
Net Cash
Need Borrowings
End Cash Balance	$1,000	$1,000	$1,000
Cumulative borrowings

(Hint: These three tables are consistent. You are able to get cash inflow from table 2 and cash outflow from table 3)