Part 3. Rusty Spears, CEO of Rusty's Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts for the next two years. Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 25%; collections during the month following the sale, 65%; collections the second month following the sale, 10%. Payments for labor and raw materials are typically made during the month following the one in which these costs were incurred. Total costs for labor and raw materials are estimated for each month as shown in the table. General and administrative salaries will amount to approximately $25,000 a month; lease payments under long-term lease contracts will be $12,000 a month; depreciation charges will be $8,000 a month; miscellaneous expenses will be $1,800 a month; income tax payments of $30,000 will be due in both September and November; and a progress payment of $150,000 on a new office suite must be paid in August. Cash on hand on July 1 will amount to $200,000, and a minimum cash balance of $90,000 will be maintained throughout the cash budget period. b) What is the maximum amount of loan needed over the six month period? Max. Loan Part 3. Rusty Spears, CEO of Rusty's Renovations, a custom building and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts for the next two years. Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 25%; collections during the month following the sale, 65%; collections the second month following the sale, 10%. Payments for labor and raw materials are typically made during the month following the one in which these costs were incurred. Total costs for labor and raw materials are estimated for each month as shown in the table. General and administrative salaries will amount to approximately $25,000 a month; lease payments under long-term lease contracts will be $12,000 a month; depreciation charges will be $8,000 a month; miscellaneous expenses will be $1,800 a month; income tax payments of $30,000 will be due in both September and November; and a progress payment of $150,000 on a new office suite must be paid in August. Cash on hand on July 1 will amount to $200,000, and a minimum cash balance of $90,000 will be maintained throughout the cash budget period. b) What is the maximum amount of loan needed over the six month period? Max. Loan