Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line

of credit from her bank. In anticipation of her meeting with the bank, she

has asked you to complete a cash budget for the final four months of the

calendar yea Sept$-$Dec$)$ using the following assumptions:

The firm's credit policy is $\frac{2}{10},$ net $30.$ That means a $2$ percent

discount is allowed if payment is made within $10$ days of the sale.

Otherwise, payment in full is due $30$ days after the date of the sale.

On average $20$ percent of the firm's customers take the discount, $65$

percent pay within $30$ days, and $12$ percent pay late. Three percent of

sales are uncollectible. For budgeting purposes, discount sales are

assumed to be collected in the month of the sale, net sales in the

month after the sale, and late sales two months after the sale.

A given month's purchases are $25$ percent of the forecasted sales amount

for that month and $50$ percent of the next month's sales forecast.

Payments are made one month after the purchase.

General and administrative salaries will amount to $$60,000$ a month,

while lease obligations amount to $$10,000$ per month. The firm

estimates miscellaneous expenses to be $$8,000$ per month, and fixed

assets are currently being depreciated by $$10,000$ per month.

The company has $$1,000,000$ of bonds outstanding, with an interest

payment of $$40,000$ due on September $15.$

Federal and state income taxes for the year are expected to be

$$580,000,$ with a quarterly payment due in December. Payment of $$120,000$

for new equipment will be due in November.

The firm needs to maintain a minimum cash balance of $$50,000.$ At the

end of August, the cash balance has fallen to $$25,000.$

What is the maximum cash shortfall$/$surplus during the $4-$month planning

period?