Here's the cash budget to go with the previous balance sheet. The areas highlighted are where I$\text{'}$m having trouble as the instructions state: Cash balance is required to be $$145,000$ per month. The interest rate is $10\%$ per year on bank borrowings. Interest must be paid monthly on all bank borrowings. You cannot pay back a loan if you need to borrow. If you need to borrow to establish the minimum cash balance, that loan is a line$-$of$-$credit loan. The beginning note payable to the bank is not a line of credit requiring a minimum cash balance. The beginning cash at $$45,000$ is correct.