Helen Bowers, the owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2021 and 2022:

May 2021	$	160,000
June		160,000
July		320,000
August		480,000
September		640,000
October		320,000
November		320,000
December		80,000
January 2022		160,000

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:

May 2021	$	80,000
June		80,000
July		112,000
August		784,000
September		272,000
October		192,000
November		144,000
December		80,000

General and administrative salaries are approximately $27,000 a month. Lease payments under long-term leases are $9,000 a month. Depreciation charges are $36,000 a month. Miscellaneous expenses are $2,700 a month. Income tax payments of $72,000 are due in September and December. A progress payment of $190,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $132,000, and a minimum cash balance of $95,000 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".

a) Prepare a monthly cash budget for the last 6 months of 2021. All payments and expenses should be entered as positive numbers. Net cash losses, negative cash balance, negative cumulative cash, and cumulative loans outstanding, if any, should be indicated by a minus sign.

b) Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. Required financing, if any, should be indicated by a minus sign.

	Required financing or
	excess funds
July	$_______
August	$_______
September	$_______
October	$_______
November	$_______
December	$_______

e) If Bowers' customers began to pay late, collections would slow down, thus increasing the required loan amount. If sales declined, this also would have an effect on the 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.

-Click "Ok".

		% Collections in 2nd month
Change in sales		0%	15%	30%	45%	60%	75%	90%
-100%		$________	$________	$________	$________	$________	$________	$________
-75%		$________	$________	$________	$________	$________	$________	$________
-50%		$________	$________	$________	$________	$________	$________	$________
-25%		$________	$________	$________	$________	$________	$________	$________
0%		$________	$________	$________	$________	$________	$________	$________
25%		$________	$________	$________	$________	$________	$________	$________
50%		$________	$________	$________	$________	$________	$________	$________
75%		$________	$________	$________	$________	$________	$________	$________
100%		$________	$________	$________	$________	$________	$________	$________