Loan requirement or cash surplus
Cash at start of month			$124,000	$182,850	$339,200	-$44,450	$56,900	$175,750
Cumulative cash			$182,850	$339,200	-$44,450	$56,900	$175,750	$227,100
Target cash balance			95,000	95,000	95,000	95,000	95,000	95,000
Cumulative surplus cash or loans outstanding to maintain the target cash balance			$87,850	$244,200	-$139,450	-$38,100	$80,750	$132,100
b. Preparing monthly estimates of the required financing or excess funds
			July	August	September	October	November	December
Required financing or excess funds			$87,850	$244,200	-$139,450	-$38,100	$80,750	$132,100
e. Doing a sensitivity analysis that shows the effects of the change in sales and the collection terms
Maximum loan required	$?	enter formula here

If Bowers' customers began to pay late, collections would slow down, thus increasing the required loan amount. If sales declined, this also would have an effect on the required loan. Do a sensitivity analysis that shows the effects of these two factors on the maximum loan requirement. Enter your answers as positive numbers.

What is the Maximum loan required and what formula do you use to input this to create this table?

To complete the sensitivity analysis, follow these steps in excel:

• Ensure that cell A60 is a reference to cell B56 (i.e. =B56).
• Select/highlight cells A60 through H69 (A60:H69).
• From the top ribbon, select Data > Forecast > What-If-Analysis > Data Table
• For row input cell click on cell B5 or enter $B$5.
• For column input cell click on cell B14 or manually enter $B$14.
• Click "Ok".

		% Collections in 2nd month
Change in sales		0%	15%	30%	45%	60%	75%	90%
-100	%	$
-75	%
-50	%
-25	%
0	%
25	%
50	%
75	%
100	%