How do I calculate how much they need to borrow?

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 5,000 Cash, Beginning of Quarter Cash Collections 78,465 373,748 5,000 2,116,800 2,121,800 1,620,675 1,625,675 5,000 496,125 501,125 78,465 4,607,348 4,685,813 Cash Available 452,213 Cash Disbursements Direct materials 195,711.38 631,462.13 120,750 Direct labour 29,400 421,978.13 78,750 144,888 62,750 6,000 1,349,475.00 296,625 261,606 231,500 6,000 2,598,626.64 525,525 692,332 399,500 Manufacturing Overhead Selling and Admin 167,388 118,450 (11,125) Dividend 6,000 24,000 Equipment Purchases 116,375 6,000 58,600 1,100,575.13 525, 100 87,900 426,336.38 Total disbursements 714,366.13 2,145,206.00 146,500 4,386,483.64 299,329 -262,153 -23,406 74,789 Excess (deficiency) Financing: Borrowing Repayments Interest Total Financing Ending Cash Balance 5. Patio Comforts has negotiated a line of credit with the bank such that they can borrow up to $400,000, in increments of $1,000, at an interest rate of 4%. Assume all borrowing takes place at the beginning of the quarter (interest is paid for the full quarter when borrowing takes place) and repayment takes place at the end of the quarter (interest is paid for the full quarter that repayment is made.) Repayment must also be in increments of $1,000 plus interest. Creditors require a minimum bank balance of $5,000