Problems 1. Lakewood Laser SkinCare's ending cash balance as of January 31, 2018 (the end of its fiscal year 2017) was 515,000. Its expected cash collections and payments for the next six months are given in the following table. Month Collections Payments February $37,125 $43,650 March 41,175 46,800 April 51,075 48,600 May 65,475 54,675 June 73,125 60,075 July 81,000 61,200 a. Calculate the firm's expected ending cash balance for each month. b. Assuming that the firm must maintain an ending cash balance of at least $12,000, how much must they borrow during each month? C. If the firm must pay 5% annual interest on its short-term borrowing, what are your ending cash balances for each month? d. What are the ending cash balances if the firm uses any cash in excess of the minimum to pay off its short-term borrowing in each month? 2. Loblaw Manufacturing has asked you to create a cash budget in order to determine its borrowing needs for the June to October period. You have gathered the following information. Month June 2017 July August September October Sales $279,500 230,750 196,625 151,125 123,500 131,625 Other Payments $130,000 121,875 113,750 81,250 73,000 November