Please show formulas and keep formatting

112. Based on Robichek et al. (1965). The Korvair Department Store has $100,000 in available cash. At the beginning of each of the next six months, Korvair will receive revenues and pay bills as listed in the file P04_112.xlsx. It is clear that Korvair will have a short-term cash flow problem until the store receives revenues from the Christmas shopping season. To solve this problem, Korvair must borrow money. At the beginning of July, the company takes out a six-month loan. Any money borrowed for a six-month period must be paid back at the end of December along with 9% interest (carly payback does not reduce the total interest of the loan). Korvair can also meet cash needs through month-to-month borrowing. Any money borrowed for a one-month period incurs an interest cost of 2.5% per month. Determine how Korvair can minimize the cost of paying its bills on time. A D E F G H Interest rate on one-month loan 2.5% Jul Aug Sep Oct Nov Start of month Beginning cash balance carried over Dec Six-month loan One-month loan Cash on hand after taking out loans 100 100 100 100 100 100 Interest due for the one-month loan One-month loan repayment due One-month loan and interest to be paid Cash available after loan payments 2 3 4 Revenues from sales Bills to be paid Ending cash after revenues and bills 100 700 200 600 300 600 600 400 700 200 5 26 27 28 29 900 100 20 End of December requirements Siv-month loan orinrinal die Sheet1 Sheet2 Sheets A B C D E G H Cash available after loan payments 200 300 600 700 900 Revenues from sales Bills to be paid Ending cash after revenues and bills 100 700 600 600 400 200 100 End of December requirements Six-month loan principal due Interest on six-month loan due Last one month loan due Interest on last one-month loan due Cash needed at the end of December 3 1 0 Ending cash for December 7 8 Total interest payments 9 10 1 Sheet1 Sheet2 Sheet3 Ready