Middletown Construction, Inc. has estimated the following sales forecast over the next $12$ months $($they close in the winter$)$:

January $$0$

February $$0$

March $$275,000$

April $$275,000$

May $$312,000$

June $$417,000$

July $$714,000$

August $$611,000$

September $$827,000$

October $$500,000$

November $$116,000$

December $$0$

The company also gathered the following collection estimates regarding the forecast sales:

Payment collection within the month of sale $=20\%$

Payment collection the month following sales $=60\%$

Payment collection the second month following sales $=20\%$

Payments for raw materials and labor costs are paid the month after the purchase and are estimated as follows:

March $$220,000$

April $$240,000$

May $$225,000$

June $$287,000$

July $$350,000$

August $$415,000$

September $$242,000$

October $$214,000$

November $$222,000$

Additional financial information is as follows:

Administrative salaries will approximately amount to $$30,000$ a month.

Lease payments are around $$10,000$ a month.

A one$-$time new plant investment for $$23,000$ is expected to incur and be paid in June.

Income tax payments estimated to be around $$50,000$ will be due in both June and September.

Miscellaneous costs are estimated to be around $$5,000$ a month.

Cash on hand on March $1$ will be around $$50,000,$ and a minimum cash balance of $$50,000$ shall be on hand at all times.

To receive full credit on this assignment, please show all work, including formulas and calculations used to arrive at the financial values.

Prepare a monthly cash budget for Middletown Construction, Inc. for the $12-$month period of January through December.

Use Excel to prepare the monthly cash budget with the use of this template.

Based on your cash budget findings, answer the following questions in a $3-$page analysis:

Will the company need any outside financing?

When is the line of credit the highest for MCI will need?

If you were a bank manager, would you want MCI as your client? Why or why not?