1. Ping Bolt and Nut is attempting to estimate their financial needs for the first 6 months of 2019. Sales forecasts for 2019 are as follows:

January $50,000 May $ 80,000

February 60,000 June 120,000

March 60,000 July 125,000

April 70,000

The credit department estimates the collections as follows: collections within the month of sale, 20 percent; collections the month following the sale, 40 percent; collections the second month following the sale, 40 percent.

The cost of raw materials is 40 percent of sales. Raw materials are delivered and paid for in the month prior to sale. Labor costs are 24 percent of sales and are paid for in the month of the sale. Selling, administrative, and other expenses are 16 percent of sales and are paid for in the month of the sale. All goods sold are manufactured in the month of the sale.

Semiannual interest charges of $20,750 are due in March on a long-term bonds. Quarterly common stock cash dividends of $10,000 are paid in March. Income tax prepayments of $18,000 are made in March.

Cash on hand at the beginning of March, 2010 is $230,000, and a minimum cash balance of $50,000 should be maintained.

(1) Prepare a cash budget for Ping Bolt and Nut for March and April of 2019. Indicate the amount of excess cash or the amount of financing required to maintain the $50,000 minimum cash balance.