help with a and b

(Preparation of a cash budget) Lewis. Plinting has projected its sales for the first 8 months of 2019 as follows: Lewis coliects 20 percent of its seles in the month of the sale, 50 percent in the month following the sale, and the remaining 30 percent 2 months following the sale. During November and December of 2018, Lewis's sales were $240,000 and $165,000, respectively. Lewis purchases raw materials 2 months in advance of its sales. These purchases are equal to 65 percent of its final salos. The supplier is paid 1 month affer delivery. Thus, putchases for April sales are made in February and payment is made in March. In addition. ront expense is $10,000 per month and other expenses tolal $20,000 a month. Beginning in March, quarterty tax prepayments of $23,500 are made, The company's cash balance as of December 31, 2018. was $28,000; a minimum balance of $25,000 must be maintained at all times to satisfy the firm's bank line of credit agreement. Lewis has arranged with its bank for short-term credit at an interest rate of 15 percent per annum (1.25 percent per month) to be paid monthly. Borrowing to meet estimated monthly cash needs takes place at the end of the month, and interest is not paid until the ond of the following month. Consequonty, if the firmi needed to borrow $50.000 during April, then it would pay $625(=0.0125$50.000) in interest during May. Finally, Lewis folows a poilcy of repaying its outstanding short-ferm dobt in any month in which its cash balance exceeds the minimum desired balance of $25,000. a. Lowis noeds to know what its cash reguirements will be for the next 6 months so that it can renegotiato the torms of its short'term credil agreement with its bank, if necessary. To addiess this problem, prepare a 6-month cash budget. Also, rocalculate the budget for a t20 porcent variation in its monthly sales. b. Lewis has a $20.000 nole due at the end of June. Will the firm have sufficient cash lo repay the loan? a. Prepare a cash budget for Lewis Printing covering the first 6 months of $23,500. Fill in the Collections for the month of January: (Round to the nearest dollar.) Data table (Click on the following icon , in order to copy its contents into a spreadsheet.)