PLEASE ANSWER CIRCLES

Prepare a Cash Budget with the following assumptions:

$$ Edwin$$s cash balance at the end of April was $$31,000.$

$$ Edwin wishes to maintain a cash balance of at least $$30,000$ at the end of each month.

$$ Edwin currently has a line of credit with a local bank. The balance of the line of credit was $$150,000$ at

the end of April and May. The bank charges interest at a rate of $6\%$ annually on the outstanding

balance. Interest payments are paid monthly on the previous month$$s balance. Edwin can borrow up

to $$250,000$ on this Line of Credit.

When calculating the monthly interest on the Line of Credit, use the following formula for each month:

Outstanding Balance x Rate x $1/12$

$$ In June, Edwin purchased new machinery to upgrade its inventory storage and delivery system. The

cost of this new machinery was $$75,000.$