Prepare a monthly cash budget for January through April. Be sure to clearly show the surplus (deficit) of cash.

Based on the deficit cash shown on your cash budget, what is the dollar amount that Bond Private Security should have for a line of credit over this 4-month period? Note: dont add a cushion, just base this amount off of the cash budget.

Collections during month of sale				35%
Collections during month after sale				50%
Collections during second month after sale				13%
Lease payments				$4,600
Target cash balance				$4,000
General and administrative salaries				$12,000
Depreciation charges				$3,500
Tax payments (March)				$6,500
Miscellaneous expenses				$2,470
Cash on hand January 1				$5,500
			November	December	January	February	March	April	May
Original sales estimates			$85,000	$72,000	$68,000	$54,000	$41,000	$30,000	$37,000
Original labor and raw mat. estimates				$51,000	$40,500	$30,750	$22,500	$27,750