June $980 550 May August September October November December Credit sales $950 $1,000 556 1,010 567 $1,030 578 $1,050 594 $1,080 605 $1,100 Credit purchases July August September OctoberNovember December Cash receipts Collections from this month's sales Collections from previous month's sales Collections from sales two months previously 148 750 98 996 154 773 101 $1,028 159 788 103 $1,050 162 810 105 $1,077 735 758 100 $1,009 Total cash receipts $977 Payments for credit purchases Wages and salaries 550 170 556 172 578 179 594 184 605 187 567 50 Other expenses Taxes Payment for plant construction 1,000 1,834 $869 $819 $911 $872 $887 Total cash disbursements Net cash flow (Receipts - disbursements) Beginning cash balance Ending cash balance Target (minimum) cash balance Surplus (shortfall) cash $117 -373 -$256 $178 -256 $78 $190 -$825 452 $452$373 200 $252-$573 $177 275 $108 167 $275 200 $112 200 $456 -$278 Use the information provided in the budget to complete the following sentences. Capel Company will be able to invest in short-term marketable securities in some months and will need to borrow to cover cash requirements in others. In the last six months of the year, Capel will Capel Company will want a credit line of at least $ expect that they will be able to invest up to $1.277M and a cash to end the year with a cash to cover the month with the greatest shortfall, and the financial managers can tell the bank ta in short-term marketable securities. 1,277M R7M