National Beverage Company anticipates the following first-quarter sales for 2021: $1,800,000 (January), $1,600,000 (February), and $2,100,000 (March). It posted the following sales figures for the last quarter of 2020: $1,900,000 (October), $2,050,000 (November), and $2,200,000 (December). Sales is anticipated to increase by 20% every month for April - June.

The company sells 40% of its products on credit, and 60% are cash sales. The company collects credit sales as follows: 30% in the following month, 50% two months later, and 18% three months later with 2% defaults. What are the anticipated cash inflows for the first quarter of 2021?

National Beverage Company produces its products two months in advance of anticipated sales and ships to warehouse centers the month before sale. The inventory safety stock is 10% of the anticipated months sale. Beginning inventory is 8% of units sold. Each unit costs $0.25 to make. The average selling price is $0.70 per unit. The cost is made up of 40% labor, 50% materials, and 10% shipping (to the warehouse). Labor is paid the month of production, shipping the month after production, and raw materials the month before production. Calculate the production costs for Jan Mar 2021.

Other cash outflows of the company are as follows:

Salaries: $420,000 per month from Oct-Dec; $450,000 per month from Jan Mar

Utilities: 15% of monthly sales

Other Operational costs: 10% of monthly sales

Safety Reserve: 5% of monthly cash sales

What are the anticipated cash outflows for the first quarter of 2021?

The company has access to borrowing for its needs from MyBank at 4% p.a. based on fixed-rate and is paid 3.3% p.a. for surplus deposited into the banks premier savings account.

Using a worksheet, assess the companys cash needs for the first quarter of 2021.