Meiion Company Cash Budget For the Six Months Ended December 31, Year 1 ($ millions) August September October November December $1,260 Credit sales $1,140 $1,176 660 $1,200 667 $1,212 680 $1,236 693 $1,296 726 $1,320 Credit purchases 713 August September October November December Cash receipts Collections from this month's sales Collections from previous month's sales Collections from sales two months previously 178 900 118 $1,196 182 909 120 $1,211 185 927 121 $1,233 191 945 124 $1,260 194 972 126 $1,292 882 Total cash receipts Cash disbursements Payments for credit purchases Wages and salaries $1,172 667 680 693 252 713 726 264 242 247 Other expenses Taxes Payment for plant construction 65 70 73 1,200 $2,237$1,129 Total cash disbursements Net cash flow (Receipts- disbursements) Beginning cash balance Ending cash balance Target (minimum) cash balance Surplus (shortfall) cash $1,078 $1,018 1,085 1,104 $178 248 $426 200 -$1,026 426 $188 -321 $133 $104 $175 -496 $321 154 $248 200 226-$800 $521 $333 Use the information provided in the budget to complete the following sentences Mellon 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, Mellon will Mellon Company will want a credit line of at least expect that they will be able to invest up to s to end the year with a cash to cover the month with the greatest shortfall, and the financial managers can tell the bank to and a cash in short-term marketable securities