Jefferies Manufacturing produces a variety of industrial valves. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur: i (Click the icon to view the expected transactions.) Requirement 1. Prepare a combined cash budget for Jefferies Manufacturing for the third quarter, with a column for each month and for the quarter total. More info (Leave unused cells blank. Use parentheses or a minus sign for negative ending cash balances.) Jefferies Manufacturing a. Cash collections from sales in July, August, and September, are projected to be Combined Cash Budget $99,000, $152,000, and $121,000 respectively. For the Months of July through September b. Cash payments for the upcoming third quarter are projected to be $143,000 in July, $104,000 in August, and $132,000 in September. July August September Quarter c. The cash balance as of the first day of the third quarter is projected to be $37,000 Beginning balance of cash 37000 30000 40260 37000 d. Jefferies Manufacturing has a policy that they must maintain a minimum cash Cash collections 99000 152000 121000 372000 balance of $30,000. Total cash available 136000 182000 161260 409000 The company has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have a minimum balance of $30,000. If the Cash payments -143000 -104000 -132000 -379000 company has more than $30,000 at the end of any given month, it uses the excess funds to pay off any outstanding line of credit balance. Each month, Jefferies Ending cash balance before financing -7000 78000 29260 30000 Manufacturing pays interest on the prior month's line of credit ending balance. The Financing: actual interest rate that Jefferies Manufacturing will pay floats since it is tied to the prime rate. However, the interest rate paid during the budget period is expected to Borrowings 37000 740 740 be 2% of the prior month's line of credit ending balance (if the company did not have Repayments -37000 an outstanding balance at the end of the prior month, then Jefferies Manufacturing does not have to pay any interest). All line of credit borrowings are taken or paid off Interest Payments -740 on the first day of the month. As of the first day of the third quarter, Jefferies 30000 40260 30000 30000 Manufacturing did not have a balance on its line of credit. Ending cash balance