PLEASE UPLOAD THE ANSWER TO THE BOTH PARTS IN AN EXCEL SPREADSHEET

(Cash budget) The Sharpe Corporations projected sales for the first eight months of 2004 are as follows:

January $90,000, February $120,000, March $135,000, April $240,000, May $300,000, June $270,000

July $225,000, August $150,000

Of Sharpes sales, 10 percent is for cash, another 60percent is collected in the month following sale, and 30 percent iscollected in the second month following sale. November and Decembersales for 2003 were $220,000 and $175,000, respectively.

Sharpe purchases its raw materials two months in advance ofits sales equal to 60 percent of their final sales price. Thesupplier is paid one month after it makes delivery. For example,purchases for April sales are made in February and payment is madein March.

The companys cash balance at December 31, 2003,was $22,000; a minimum balance of $15,000 must be maintained at alltimes. Assume that any short-term financing needed tomaintain the cash balance is paid off in the month following themonth of financing if sufficient funds are available. Interest onshort-term loans (12 percent) is paid monthly. Borrowing tomeet estimated monthly cash needs takes place at the beginning ofthe month. Thus, if in the month of April the firm expects to havea need for an additional $60,500, these funds would be borrowed atthe beginning of April with interest of $605 (.12 1/12 $60,500) owed for April and paid at the beginning ofMay.

a. Prepare a cash budget for Sharpe covering the firstseven months of 2004.

b. Sharpe has $200,000 in notes payable due in July thatmust be repaid or renegotiated for an extension. Will thefirm have ample cash to repay the notes?