I am working on a case and need assistance understanding the data provided and answering case questions. Attached are 1 the case, 2 the questions, and 3 the data. Could you please provide guidance on how to answer the questions, specifically the ones that need calculations like questions 3,8,7,9. (need guidance understanding the date to complete a research paper overview).

Thank you

Cases in Healthcare Finance Case Questions CASE 8 QUESTIONS ALPINE VILLAGE CLINIC Cash Budgeting 1. Construct a monthly cash budget for the clinic for the period January through June 2010. What is the maximum monthly loss during the six-month planning period? What is the maximum cumulative borrowing balance? (For purposes of this question, disregard any interest payments on short-term bank loans or interest received from investing surplus funds.) 2. The monthly cash budget you have prepared assumes that all cash flows occur on the same day each month. Suppose the clinic's outflows tend to cluster at the beginning of the month, while collections tend to be heaviest toward the end of each month. a. How would this imbalance affect the validity of the monthly budget? b. What could be done to correct any inaccuracies that might occur? 3. Construct the clinic's daily cash budget for January. Does it indicate the same maximum borrowing requirement for the month as does the monthly budget? Does the end-of-January borrowing requirement in the daily budget match the end-of-January borrowing requirement in the monthly budget? If not, explain the difference. 4. Should seasonal variations be incorporated into the clinic's target cash balance? In other words, should the balance be higher during months when cash needs are greater? 5. The only receipts shown on the clinic's cash budget are collections. What other types of cash inflows could occur? 6. Consider the interest paid on short-term borrowings and earned on short-term investments. Modify the monthly portion of the model to include these cash flows. Do these flows have a significant impact on estimated borrowing requirements? 7. The clinic's cash management policy is to invest any surplus funds in marketable securities. a. Can you suggest an investment policy that would provide liquidity and safety yet offer the clinic a reasonable return on its investment? Specifically, describe the types of securities, the desired maturities, the expected returns, and the risks that would be involved. b. Would your suggestions be the same for a business whose cash balances were projected to be in the millions of dollars as opposed to thousands of dollars? 8. What would be the impact on the monthly net cash flows if actual billings from November 2009 to June 2010 were 20 percent below the forecasted amounts? What if they were 50 percent below the forecasted amounts? In your answers, assume that purchases and labor costs, as well as all other expenses, cannot be adjusted downward during this period even though realized volume was below that forecasted. 9. Suppose the clinic's third-party payers changed their payment patterns and began paying as follows: 10 percent in the month of sale, 20 percent in the following month, and 70 percent in the second month versus the old 20-20-60 pattern. How large a credit line would the clinic require? 10. On the basis of all your analyses, how large of a credit line would you recommend the clinic seek from First Bank? Health Administration Press, 2010. Reproduction without permission is prohibited. CASE 8 8/24/09 Student Version Copyright 2010 by FACHE ALPINE VILLAGE CLINIC Cash Budgeting Note: The Interest adjusted sheet has a circular reference. If a dialogue box appears, just click on the appropriate response and proceed. This case demonstrates the use of a cash budget for analyzing a business's cash flows and financing needs over time. The case includes both monthly and daily budgets. The worksheet has a single input section, but it has separate models for the monthly and the daily cash budgets. Changes in input data will flow through to both models and will be reflected in the output. Note that the model extends out to Column M. The model consists of a complete base case analysis--no changes need to be made to the existing MODEL-GENERATED DATA section. However, all values in the student version INPUT DATA section have been replaced with zeros. Thus, students must determine the appropriate input values and enter them into the model. These cells are colored red. When this is done, any error cells will be corrected and the base case solution will appear. Note that the instructor model includes a separate spreadsheet (CASE8 WITH INTEREST) that includes interest paid and received. Students will have to create such a model, as well as create their own graphics(charts) as needed to present their results. INPUT DATA: KEY OUTPUT: Projected Billings ($): November December January February March April May June July August Projected Cost Data: 2009 150,000 250,000 2010 350,000 450,000 300,000 150,000 100,000 175,000 250,000 200,000 Collections Data: % from patients % coll in 1 month % coll in 2 months Variable costs: Supplies as a % of billings % paid before use: 2 months prior 1 month prior Fixed Costs: Monthly clinical labor costs: High season Low season Other monthly costs: Gen/admin expense Lease payment Misc expense 20.0% 20.0% Semi-annual costs: 60.0% Loan amortization Billings as a % of forecast* One-time costs: 100.0% New equipment 15.0% 50.0% 50.0% $150,000 $120,000 $30,000 $12,000 $10,000 Jan Feb Mar Apr May Jun Net Cash Flow ($48,250) ($50,750) $74,498 $167,375 $26,125 ($60,750) Jan Feb Mar Apr May Jun Cum (Loan) or Surplus ($48,250) ($99,000) ($24,502) $142,873 $168,998 $108,248 $64,752 $125,000 Cash Balance Data: Target balance Beginning cash $50,000 $50,000 *This input is used to create scenarios in which actual collections are less than forecasted. To start, use 100% as the value. MODEL-GENERATED DATA: Monthly Cash Budget: I. COLLECTIONS/PAYMENTS November Billings (expected) $150,000 Billings (actual) $150,000 Collections: Month of sale $30,000 1 month after sale 2 months after sale Total collections Supplies purchases Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs December $250,000 $250,000 January $350,000 $350,000 February $450,000 $450,000 March $300,000 $300,000 April $150,000 $150,000 May $100,000 $100,000 June $175,000 $175,000 $50,000 30,000 $70,000 50,000 90,000 $210,000 $90,000 70,000 150,000 $310,000 $60,000 90,000 210,000 $360,000 $30,000 60,000 270,000 $360,000 $20,000 30,000 180,000 $230,000 $35,000 20,000 90,000 $145,000 $52,500 $67,500 $45,000 $22,500 $15,000 $26,250 $37,500 $30,000 $26,250 $33,750 26,250 $22,500 33,750 $56,250 $11,250 22,500 $33,750 $7,500 11,250 $18,750 $13,125 7,500 $20,625 $18,750 13,125 $31,875 $15,000 18,750 $33,750 July $250,000 $250,000 August $200,000 $200,000 II. CASH GAIN OR LOSS FOR MONTH Collections Payments: Supplies Clinical labor General/administrative expenses Lease expense Miscellaneous expenses Term loan payment New equipment Total payments January $210,000 February $310,000 March $360,000 April $360,000 May $230,000 June $145,000 $56,250 150,000 30,000 12,000 10,000 $33,750 150,000 30,000 12,000 10,000 $18,750 150,000 30,000 12,000 10,000 64,752 $20,625 120,000 30,000 12,000 10,000 $31,875 120,000 30,000 12,000 10,000 $33,750 120,000 30,000 12,000 10,000 $258,250 125,000 $360,750 $285,502 $192,625 $203,875 $205,750 ($48,250) ($50,750) $74,498 $167,375 $26,125 ($60,750) January $50,000 $1,750 50,000 February $1,750 ($49,000) 50,000 March ($49,000) $25,498 50,000 April $25,498 $192,873 50,000 May $192,873 $218,998 50,000 June $218,998 $158,248 50,000 ($48,250) ($99,000) ($24,502) $142,873 $168,998 $108,248 2 $11,290 3 $11,290 4 $11,290 5 $11,290 6 $11,290 7 $11,290 8 $11,290 9 $11,290 10 $11,290 11 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 Net cash gain (loss) III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done Cumulative cash Target cash balance Surplus cash or total loans outstanding to maintain target cash balance Daily Cash Budget: I. COLLECTIONS/PAYMENTSDay 1 Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs $0 $0 $0 $0 22,500 33,750 $56,250 $6,871 $6,871 $6,871 $6,871 II. CASH GAIN OR LOSS Collections Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses Term loan payment Total payments $75,000 15,000 12,000 323 $323 $323 $323 323 $323 $323 $323 $323 $323 $323 $102,323 $323 $323 $323 $56,573 $323 $323 $323 $323 $323 $323 Net cash gain (loss) ($95,452) $6,548 $6,548 $6,548 ($49,702) $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 ($38,903) ($32,355) 50,000 ($32,355) ($25,806) 50,000 ($25,806) ($75,508) 50,000 ($75,508) ($68,960) 50,000 ($68,960) ($62,411) 50,000 ($62,411) ($55,863) 50,000 ($55,863) ($49,315) 50,000 ($49,315) ($42,766) 50,000 ($42,766) ($36,218) 50,000 ($82,355) 3 ($75,806) 4 ($125,508) 5 ($118,960) 6 ($112,411) 7 ($105,863) 8 ($99,315) 9 ($92,766) 10 ($86,218) 11 $6,871 $56,250 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done $50,000 ($45,452) Cumulative cash ($45,452) ($38,903) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($95,452) ($88,903) Day 1 2 Daily Cash Budget - Continued: Day 12 I. COLLECTIONS AND PAYMENTS Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs II. CASH GAIN OR LOSS Collections 13 14 15 16 17 18 19 20 21 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses Term loan payment Total payments Net cash gain (loss) $75,000 15,000 $323 $323 $323 323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $90,323 $323 $323 $323 $323 $323 $323 $6,548 $6,548 $6,548 ($83,452) $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 ($23,121) ($16,573) 50,000 ($16,573) ($100,024) 50,000 ($100,024) ($93,476) 50,000 ($93,476) ($86,927) 50,000 ($86,927) ($80,379) 50,000 ($80,379) ($73,831) 50,000 ($73,831) ($67,282) 50,000 ($67,282) ($60,734) 50,000 ($66,573) 14 ($150,024) 15 ($143,476) 16 ($136,927) 17 ($130,379) 18 ($123,831) 19 ($117,282) 20 ($110,734) 21 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done ($36,218) ($29,669) Cumulative cash ($29,669) ($23,121) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($79,669) ($73,121) Day 12 13 Daily Cash Budget - Continued: Day 22 I. COLLECTIONS AND PAYMENTS Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs II. CASH GAIN OR LOSS Collections Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses Term loan payment Total payments Net cash gain (loss) $0 23 24 25 26 27 28 29 30 31 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 0 $3,871 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 31 $3,871 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $3,548 ($47,637) ($41,089) 50,000 ($41,089) ($34,540) 50,000 ($34,540) ($27,992) 50,000 ($27,992) ($21,444) 50,000 ($21,444) ($14,895) 50,000 ($14,895) ($8,347) 50,000 ($8,347) ($1,798) 50,000 ($1,798) $1,750 50,000 ($91,089) 24 ($84,540) 25 ($77,992) 26 ($71,444) 27 ($64,895) 28 ($58,347) 29 ($51,798) 30 ($48,250) 31 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done ($60,734) ($54,185) Cumulative cash ($54,185) ($47,637) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($104,185) ($97,637) Day 22 23 END CASE 8 8/24/09 Student Version Copyright 2010 by FACHE ALPINE VILLAGE CLINIC Cash Budgeting Note: The second sheet has a circular reference. If a dialogue box appears, just click on the appropriate response and proceed. This case demonstrates the use of a cash budget for analyzing a business's cash flows and financing needs over time. The case includes both monthly and daily budgets. The worksheet has a single input section, but it has separate models for the monthly and the daily cash budgets. Changes in input data will flow through to both models and will be reflected in the output. Note that the model extends out to Column M. The model consists of a complete base case analysis--no changes need to be made to the existing MODEL-GENERATED DATA section. However, all values in the student version INPUT DATA section have been replaced with zeros. Thus, students must determine the appropriate input values and enter them into the model. These cells are colored red. When this is done, any error cells will be corrected and the base case solution will appear. Note that the instructor model includes a separate spreadsheet (CASE8 WITH INTEREST) that includes interest paid and received. Students will have to create such a model, as well as create their own graphics(charts) as needed to present their results. INPUT DATA: KEY OUTPUT: Projected Billings ($): November December January February March April May June July August Projected Cost Data: 2009 150,000 250,000 2010 350,000 450,000 300,000 150,000 100,000 175,000 250,000 200,000 Collections Data: % from patients % coll in 1 month % coll in 2 months Variable costs: Supplies as a % of billings % paid before use: 2 months prior 1 month prior Fixed Costs: Monthly clinical labor costs: High season Low season Other monthly costs: Gen/admin expense Lease payment Misc expense 20.0% 20.0% Semi-annual costs: 60.0% Loan amortization Billings as a % of forecast* One-time costs: 100.0% New equipment 15.0% 50.0% 50.0% $150,000 $120,000 $30,000 $12,000 $10,000 Jan Feb Mar Apr May Jun Net Cash Flow ($48,250) ($51,072) $73,836 $167,205 $26,597 ($60,190) Jan Feb Mar Apr May Jun Cum (Loan) or Surplus ($48,250) ($99,322) ($25,486) $141,719 $168,316 $108,126 $64,752 $125,000 Cash Balance Data: Target balance Beginning cash $50,000 $50,000 *This input is used to create scenarios in which actual collections are less than forecasted. To start, use 100% as the value. MODEL-GENERATED DATA: Monthly Cash Budget: I. COLLECTIONS/PAYMENTS November Billings (expected) $150,000 Billings (actual) $150,000 Collections: Month of sale $30,000 1 month after sale 2 months after sale Total collections Supplies purchases Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs December $250,000 $250,000 January $350,000 $350,000 February $450,000 $450,000 March $300,000 $300,000 April $150,000 $150,000 May $100,000 $100,000 June $175,000 $175,000 $50,000 30,000 $70,000 50,000 90,000 $210,000 $90,000 70,000 150,000 $310,000 $60,000 90,000 210,000 $360,000 $30,000 60,000 270,000 $360,000 $20,000 30,000 180,000 $230,000 $35,000 20,000 90,000 $145,000 $52,500 $67,500 $45,000 $22,500 $15,000 $26,250 $37,500 $30,000 $26,250 $33,750 26,250 $22,500 33,750 $56,250 $11,250 22,500 $33,750 $7,500 11,250 $18,750 $13,125 7,500 $20,625 $18,750 13,125 $31,875 $15,000 18,750 $33,750 January $210,000 February $310,000 March $360,000 April $360,000 May $230,000 June $145,000 $56,250 150,000 $33,750 150,000 $18,750 150,000 $20,625 120,000 $31,875 120,000 $33,750 120,000 II. CASH GAIN OR LOSS FOR MONTH Collections Payments: Supplies Clinical labor July $250,000 $250,000 August $200,000 $200,000 General/administrative expenses Lease expense Miscellaneous expenses Term loan payment New equipment Total payments Interest Income/ (Expenses) Net cash gain (loss) 30,000 12,000 10,000 30,000 12,000 10,000 64,752 30,000 12,000 10,000 30,000 12,000 10,000 30,000 12,000 10,000 ($48,250) 125,000 $360,750 ($322) ($51,072) $285,502 ($662) $73,836 $192,625 ($170) $167,205 $203,875 $472 $26,597 $205,750 $560 ($60,190) January $50,000 $1,750 50,000 February $1,750 ($49,322) 50,000 March ($49,322) $24,514 50,000 April $24,514 $191,719 50,000 May $191,719 $218,316 50,000 June $218,316 $158,126 50,000 ($48,250) ($99,322) ($25,486) $141,719 $168,316 $108,126 2 $11,290 3 $11,290 4 $11,290 5 $11,290 6 $11,290 7 $11,290 8 $11,290 9 $11,290 10 $11,290 11 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $258,250 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done Cumulative cash Target cash balance Surplus cash or total loans outstanding to maintain target cash balance 30,000 12,000 10,000 Daily Cash Budget: I. COLLECTIONS/PAYMENTSDay 1 Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs $0 $0 $0 $0 22,500 33,750 $56,250 $6,871 $6,871 $6,871 $6,871 II. CASH GAIN OR LOSS Collections Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses Term loan payment Total payments $75,000 15,000 12,000 323 $323 $323 $323 323 $323 $323 $323 $323 $323 $323 $102,323 $323 $323 $323 $56,573 $323 $323 $323 $323 $323 $323 Net cash gain (loss) ($95,452) $6,548 $6,548 $6,548 ($49,702) $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 ($38,903) ($32,355) 50,000 ($32,355) ($25,806) 50,000 ($25,806) ($75,508) 50,000 ($75,508) ($68,960) 50,000 ($68,960) ($62,411) 50,000 ($62,411) ($55,863) 50,000 ($55,863) ($49,315) 50,000 ($49,315) ($42,766) 50,000 ($42,766) ($36,218) 50,000 ($82,355) 3 ($75,806) 4 ($125,508) 5 ($118,960) 6 ($112,411) 7 ($105,863) 8 ($99,315) 9 ($92,766) 10 ($86,218) 11 $6,871 $56,250 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done $50,000 ($45,452) Cumulative cash ($45,452) ($38,903) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($95,452) ($88,903) Day 1 2 Daily Cash Budget - Continued: Day 12 I. COLLECTIONS AND PAYMENTS Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs II. CASH GAIN OR LOSS Collections Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses 13 14 15 16 17 18 19 20 21 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $323 $323 $323 $323 $323 $323 $75,000 15,000 $323 $323 $323 323 Term loan payment Total payments $323 $323 $323 $90,323 $323 $323 $323 $323 $323 $323 Net cash gain (loss) $6,548 $6,548 $6,548 ($83,452) $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 ($23,121) ($16,573) 50,000 ($16,573) ($100,024) 50,000 ($100,024) ($93,476) 50,000 ($93,476) ($86,927) 50,000 ($86,927) ($80,379) 50,000 ($80,379) ($73,831) 50,000 ($73,831) ($67,282) 50,000 ($67,282) ($60,734) 50,000 ($66,573) 14 ($150,024) 15 ($143,476) 16 ($136,927) 17 ($130,379) 18 ($123,831) 19 ($117,282) 20 ($110,734) 21 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done ($36,218) ($29,669) Cumulative cash ($29,669) ($23,121) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($79,669) ($73,121) Day 12 13 Daily Cash Budget - Continued: Day 22 I. COLLECTIONS AND PAYMENTS Billings $11,290 Collections: Patient payments $2,258 30-day payors 1,613 60-day payors 3,000 Total collections $6,871 Supplies payments: 2 mos prior to use 1 mo prior to use Total supplies costs II. CASH GAIN OR LOSS Collections Payments: Supplies Clinical labor General/admin expenses Lease expense Misc expenses Term loan payment Total payments Net cash gain (loss) $0 23 24 25 26 27 28 29 30 31 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $11,290 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 3,000 $6,871 $2,258 1,613 0 $3,871 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 $6,871 31 $3,871 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $323 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $6,548 $3,548 ($47,637) ($41,089) 50,000 ($41,089) ($34,540) 50,000 ($34,540) ($27,992) 50,000 ($27,992) ($21,444) 50,000 ($21,444) ($14,895) 50,000 ($14,895) ($8,347) 50,000 ($8,347) ($1,798) 50,000 ($1,798) $1,750 50,000 ($91,089) 24 ($84,540) 25 ($77,992) 26 ($71,444) 27 ($64,895) 28 ($58,347) 29 ($51,798) 30 ($48,250) 31 III. CASH SURPLUS OR LOAN REQUIREMENTS Cash at start if no borrowing is done ($60,734) ($54,185) Cumulative cash ($54,185) ($47,637) Target cash balance 50,000 50,000 Surplus cash or total loans outstanding to maintain target cash balance ($104,185) ($97,637) Day 22 23 END