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Jane Oxbow owns and operates her own cleaning industrial cleaning business in Pembroke, Ontario. On November 1, 2020, she was called by her bank manager

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Jane Oxbow owns and operates her own cleaning industrial cleaning business in Pembroke, Ontario. On November 1, 2020, she was called by her bank manager and informed that the bank will be implementing new credit restrictions rules and procedure as of January 1,2021. She has been asked to prepare an estimate of her financial requirements for the next 12 months. Specifically, her bank manager has requested a cash budget to be prepared for the period December 1, 2020, to November 30, 2021. Jane has contacted all her department managers to request the necessary information required and has received back the following information: Commercial Sales Department (Revenue from Cleaning Contracts): The Accounts Receivables Department provides the following Informatiou: The Accounts Receivables Department provides the following Information: 15% of sales are on a cash basis. 60% of sales are collected after 30 days. 25% of sales are collected after 60 days. The Accounts Payable Department provides the following information: Cost of sales, which is 50% of sales, is incurred in the month in which the sales (cleaning contracts) take place. These goods are paid for 30 days after the purchases are made (ie: the next month). Other Anticipated Expenses are as follows: - Taxes: $20,000 to be paid in April - Purchase of new equipment: $3,500 in each of the months of March, June \& September Other Anticipated Expenses are as follows: - Taxes: $20,000 to be paid in April - Purchase of new equipment: $3,500 in each of the months of March, June \& September The cash balance (Beginning Bank Balance) on December 1,2020 , is $12,000 Note: Jane feels it is necessary to always keep a minimum cash balance of $5,000 in the company's bank account. Jane has asked you to provide her with the following information to take to her meeting with her bank manager this afternoon: 1. Cash budget for the period December 1,2020 - November 30,2021 2. What, if any, will be the maximum amount required for an operating line of credit? What month(s) will this line of credit most likely be required for

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