ppter 10 Homework the buyer Check my work 8 The George Company has a policy of malntaining an end-of-month cash balance of at least $34,000. In months where a shortfall is expected, the company can draw in $1,000 Increments on a line of credit it has with a local bank, at an Interest rate of 12% per annum. All borrowings are assumed for budgeting purposes to occur at the beginning of the month, while all loan repayments (in $1,000 increments of principal) are assumed to occur at the end of the month. Interest is pold at the end of each month. For April , an end-of-month cash balance (prior to any financing and interest expense) of $21,000 is budgeted; for May, an excess of cash collected over cash payments (prior to any interest payments and loan repayments) of $22,000 is anticipated boints PM ences Required: a. What is the interest payment estimated for April (there is no bank loan outstanding at the end of March? (Do not round Intermediate calculations.) b. What is the total financing effect (cash interest plus loan transaction) for Moy? (Do not round Intermediate calculations.) Estimmed interest payment Total financing effect