Incorporate the PackBot II contract and evaluate the cash needs of the company for the last six months of 2017. Hints: set up a worksheet with columns for each month (July-December, 2017) and develop a schedule of monthly cash inflows and outflows. In preparing this schedule, assume the following:

All accounts receivable as of June 30, 2017 are collected in July, and all June 30, 2017 accounts payable are paid in July.

Work-in-process inventories, other current assets, and accrued liabilities will remain constant at their June 30, 2017 levels, i.e., you do not have to forecast changes in these accounts.

The $1,500,000 machine will be purchased on July 1, 2017.

Interest income on cash balances is insignificant and can be ignored.

Remembering RTI's desire to have a minimum cash balance of $10 million, what does your schedule reveal about RTI's borrowing needs over the last six months of 2017?

I need help setting up the Cash Budget