Prepare a monthly cash budget for the last 6 months of 2021. All payments and expenses should be entered as positive numbers. Net cash losses, negative cash balance, negative cumulative cash, and cumulative loans outstanding, if any, should be indicated by a minus sign.

Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2021 and 2022: May 2021 June July August September October November December January 2022 $190,000 190,000 380,000 570,000 760,000 380,000 380,000 95,000 190,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2021 June July August September October November December $ 95,000 95,000 133,000 931,000 285,000 247,000 171,000 95,000 General and administrative salaries are approximately $33,000 a month. Lease payments under long-term leases are $11,000 a month. Depreciation charges are $44,000 a month. Miscellaneous expenses are $4,950 a month. Income tax payments of $57,000 are due in September and December. A progress payment of $180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $122,000, and a minimum cash balance of $95,000 should be maintained throughout the cash budget period. The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to the nearest dollar. If your answer is zero, enter "0". D G 1 Cash Budgeting July $380,000 $133,000 August $570,000 $931,000 September October $760,000 $380,000 $285,000 $247.000 November December $380.000 $95.000 $171,000 $95.000 January $190,000 July August September October November December 3 Collections during month of sale 10% 4 Collections during 1st month after sale 75% 5 Collections during 2nd month after sale 15% 6 General and administrative salaries $33,000 7 Lease payments $11,000 8 Depreciation charges $44,000 9 Miscellaneous expenses $4,950 10 Income tax payments (Sep & Dec) $57,000 11 New design studio payment (Oct) $180,000 2 Cash on hand on July 1 $122,000 13 Minimum cash balance $95,000 14 Sales adjustment factor 0% 15 16 May June 17 Sales $190,000 $190,000 18 Costs of labor and raw materials $95.000 $95.000 19 20 a. Preparing a monthly cash budget for the last 6 months of 2021 21 The Cash Budget 22 May June 3 Collections and purchases worksheet 24 Sales (gross) 25 Collections 26 During month of sale 27 During 1st month after sale 28 During 2nd month after sale 29 Total collections 30 Purchases 1 Labor and raw materials 32 Payments for labor and raw materials 33 54 Cash gain or loss for month 35 Collections 36 Payments for labor and raw materials 7 General and administrative salaries 38 Lease payments 59 Miscellaneous expenses 20 Income tax payments 31 Design studio payment E2 Total payments 31 Labor and raw materials 32 Payments for labor and raw materials 33 34 Cash gain or loss for month 35 Collections 36 Payments for labor and raw materials 37 General and administrative salaries 38 Lease payments 39 Miscellaneous expenses 40 Income tax payments 41 Design studio payment 42 Total payments 43 Net cash gain (loss) during month 44 45 Loan requirement or cash surplus 46 Cash at start of month 47 Cumulative cash 48 Target cash balance Cumulative surplus cash or loans outstanding 49 to maintain the target cash balance 50 51 b. Preparing monthly estimates of the required financing or excess funds 52 July August September October 53 Required financing or excess funds 54 55 e. Doing a sensitivity analysis that shows the effects of the change in sales and the collection terms 56 Maximum loan required #N/A 57 58 Maximum loan required Change in sales (B14) 59 % Collections in 2nd month (B5) 60 0% 15% 30% 45% 60% 75% 61 -100% 62 -75% 63 -50% 64 -25% 65 0% 66 25% 67 50% 68 75% 69 100% 70 November December 889889 90% 71