How do I do problem 15-10 in the Fundamentals of Finance, Concise Edition 9?

CASH BUDGETING Helen Bowers, 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 2016 and 2017.

May 2016 $180,000

June 180,000

July 360,000

August 540,000

September 720,000

October 360,000

November 360,000

December 90,000

January 2017 180,000

Estimates regarding payments obtained from the credit department are as follows: collectedwithin the month of sale, 10%; collected the month following the sale, 75%; collected thesecond month following the sale, 15%. Payments for labor and raw materials are made themonth after these services were provided. Here are the estimated costs of labor plus rawmaterials:

General and administrative salaries are approximately $27,000 a month.

Leasepayments under long-term leases are $9,000 a month.

Depreciation charges are $36,000a month.

Miscellaneous expenses are $2,700 a month.

Income tax payments of $63,000 are due in September and December.

A progress payment of $180,000 on a newdesign studio must be paid in October.

Cash on hand on July 1 will be $132,000, anda minimum cash balance of $90,000 should be maintained throughout the cash budgetperiod.

a. Prepare a monthly cash budget for the last 6 months of 2016.

b. Prepare monthly estimates of the required financing or excess funds that is, theamount of money Bowers will need to borrow or will have available to invest

.c. Now suppose receipts from sales come in uniformly during the month (that is, cashreceipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th.Will this affect the cash budget? That is, will the cash budget you prepared be validunder these assumptions? If not, what could be done to make a valid estimate of thepeak financing requirements? No calculations are required, although if you prefer, youcan use calculations to illustrate the effects.