MUST show work (i.e., formulas, calculations, and explanations) to get credit.

B. 1 NAME: 2 PROBLEM Set 7 Chapter 15-Revenue Cycle and Current Accounts Management 5 Assigned Problem 1 6 James Buchanan Orthotics and Prosthetics is planning to request a line of credit from its bank 7 The company has produced sales estimates, and these appear in the worksbeet belew.Collection 8 estimates are as follows: 10 percent within the month of sale. 78 percent in the month following 9 the sale, and 15 percent in the second month following the sale. Lahor and sapplies estimates also 10 appear in the worksheet below. Payments for labor and supplies are ty pically made during the 11 moath following the one in which these costs have been incurred. General and administrative 12 salaries will amount to approximately S27,000 month; lease payments under long-term lease 13 contracts will be $9,000 a month; depreciation charges will be $36,000 a month; miscellaneous 15 and Decmber; and a progress payment of $180,000 on a new building must be paid in October. 16 Cash on hand on July 1 will amount to $132,000, and a minimum cash balance of $90,000 will be 17 maintained throughout the cash budget period. What loan will be the company require in 18 October? 20 ANSWER July Lugust September October November Decemher January 22 Collections worksheet: 23 1 24 2 Billed charges Cellections Within 30 days 30-60 days 60 90 day Total collections $180,000 $180,000 5360,000 $540,000 $720,000 $360,000 5360,000 $90,000 $180,000 So SD 28 3. 30 Supplies worksheet