I am stuck on this problem and do not know where to start. Our objective is to use excel formulas to get the answer, we cannot just type in the numbers.

Chapter 3 Problem 14 a Using the information provided, construct a monthly cash budget for October through December 2014. Based on your analysis, will Noble enjoy a surfeit of cash, or require external financing? b Construct a pro forma income statement for the first fiscal quarter of 2015 and a pro forma balance sheet as of December 31, 2014. What is your estimated external financine needed for December 31? c Does the December 31, 2014, estimated external financing equal your cash surplus (deficit) for this date from your cash budget? d Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2014. Noble Selected Information and Financial Statements Sales (20 percent for cash, the rest on 30-day credit terms): 2014 Actual July 76,000 August 88,000 September 266,000 2014 Projected October 125,000 November 51,000 December 53,000 September 257,000 2014 Projected October 62,000 November 27,000 December 26,000 Purchases (all on 60-day terms): 2014 Actual July 116,000 August 122,000 Salaries payable monthly Principal payment on debt due in December Interest due in December Dividend payable in December Taxes payable in November Addition to accumulated depreciation in December 20,000 25,700 9,000 15,000 19,000 4,000 Cash balance on October 1, 2014 Minimum desired cash balance 34,000 15,000 Noble's annual income statement and balance sheet for September 30, 2014 appear below. Additional information about the company's accounting methods and expectations for the last three months of 2014 appear in the footnotes. Noble Annual Income Statement Fiscal Year ended September 30, 2014 ($ 000) Net sales Cost of goods sold1 Gross profits Selling and administrative expenses2 Interest expense Depreciation3 Net profit before tax Tax at 33% Net profit after tax 1,581.6 1,098.0 483.6 240.0 18.0 16.0 209.6 69.2 140.4 Noble Balance Sheet September 30, 2014 ($ 000) Assets Cash Accounts receivable Inventory Total current assets Gross fixed assets Accumulated depreciation Net fixed assets Total assets 34.0 212.8 425.0 671.8 135.0 52.0 83.0 754.8 Liabilities Bank loan Accounts payable Accrued expenses4 Current portion long-term debt5 Taxes payable Total current liabilities Long-term debt Shareholders' equity Total liabilities and equity 0.0 379.0 55.0 25.7 56.0 515.7 120.0 119.1 754.8 . . 3 . 4 . 5 . 1 2 Cost of goods sold consists entirely of items purchased during the quarter. Selling and administrative expenses consist entirely of salaries. Depreciation is straight-line at the rate of $4,000 per quarter. Accrued expenses are not expected to change in the last quarter. $25.7 due December 2014. No payments for remainder of year. Chapter 3 Problem 14 Suggested Ansewrs a. Noble Cash Budget for Last Three Months of 2014 October November December Cash receipts: Sales for cash Collections from credit sales Total cash receipts Check Figure Cell F8 = 51,400 Cash disbursements: Payment for purchases Salaries Interest payments Principal payments Dividends Tax payments Total cash disbursements Net cash receipts (disbursements) Determination of cash needs: Beginning cash Net receipts (disbursements) Ending cash Minimum cash desired Check Figure Cell F27 = (-151, Cash surplus (deficit) Noble will need $151,300 in external financing by the end of December. Noble Income Statement October 1, 2014 - December 31, 2014 ($ thousands) Net sales Cost of sales Gross profit Selling and admin. expense Interest Depreciation Net profit before tax Tax at 33% Net profit after tax Dividends Additions to retained earnings Check Figure Cell F47 = 12.5 Noble Balance Sheet December 31, 2014 ($ thousands) Assets Cash Accounts receivable Inventory Total current assets Gross fixed assets - Accumulated depreciation Net fixed assets Total assets Check Figure Cell F62 = 561.4 Liabilities Bank loan Accounts payable Miscellaneous accruals Current portion long-term debt Taxes payable Total current liabilities Long-term debt Shareholders' equity Total liabilities & equity Inventory is estimated as follows: Beginning inventory Oct. 1. + 1st quarter purchases - 1st quarter cost of goods sold Ending inventory December 31 Check Figure Cell F80 = 425.0 Taxes payable are estimated as follows: Taxes payable Sept. 30, 2014 - payments + 1st quarter taxes accrued Taxes payable December 31 Check Figure Cell F86 = 50.5 a. Noble will require $151,300 at the end of the year. b. $151,300. c. Yes, they are the same. Whew! d. Noble Cash Flow Forecast Last three months 2014 ($ thousands) Sources of cash Cash from operations: Profit after tax Depreciation Increase in liabilities or reduction in assets: Bank loan Cash Accounts receivable Inventory Total sources Uses of cash: Dividends Decreases in liabilities or increases in assets: Accounts payable Current portion long-term debt Taxes payable Total uses