) Golden Point Company has applied at a local bank for a short-term loan of $150,000 starting on October 1, 2020. The bank's loan officer has requested a cash budget from the company for the quarter ending December 31, 2020. The following information is needed to prepare the cash budget:

Sales

$600,000

Purchases

350,000

Salaries and wages to be paid

125,000

Rent payments

7,000

Supplies (payments for)

4,500

Insurance payments

1,500

Other cash payments

22,000

A cash balance of $24,000 is planned for October 1. Accounts receivables are expected to be $48,000 on October 1. All of these accounts will be collected in the quarter ending December 31. In general, sales are collected as follows: 90% in the quarter of sale, and 10% in the quarter after sale. Accounts payable will be $480,000 on October 1 and will be paid during the quarter ending December 31. All purchases are paid in the quarter after purchase.

a) Prepare cash budget for the quarter ending December 31, 2020. Assume that the $150,000 loan will be made on October 1 and will be repaid with interest at 10% on December 31.

b) If the company desires a minimum cash balance of $18,000, will the company be able to repay the loan as planned on December 31?