Q3. Fill in the blanks of Table 1: Monthly Cash Outflows and Table 2: Monthly Cash Inflows. Then, use the information to generate Table3: Pro-Forma Cash Flow Budget and answer the following questions. (10 points in total) Table 1: AgBiz Estimated Monthly Cash Outflows (Jan.-Apr:) Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Item Feb Mar Jan $8,000 Apr Sales $7,000 Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Purchases(S) $1,500 $4,000 $5,000 $7,000 $4,000 Table 3: Pro-Forma Cash Flow Budget $1,000 $1,000 $1,000 $1,000 Item Initial Cash Balance Jan $1,000 Feb $1,000 Mar $1,000 Apr $1,000 Payment of Account Payable Payment of Overhead Total Cash Outflows Inventory Levels Cash Inflow $5,000 Total cash available Cash Outflow Assumptions: 1. The inventory turnover rate is 12. 2. Inventory is equal to current month's purchases + previous month's purchases 3. Cost of goods sold=25% of sales 4. Account payable turnover ratio=6. Net Cash Need Borrowings End Cash Balance $1,000 $1.000 $1.000 Cumulative borrowings (Hint: These three tables are consistent. You are able to get cash inflow from table 2 and cash outflow from table 3) Table 2: AgBiz Estimated Cash Inflows (Jan. - Apr.) Feb Item Sales Apr Jan $8.000 Mar $7,000 Based on the above Pro-Forma Cash Flow Budget, answer the following two questions: Cash Sales (S) $1,750 (1) Does the business need to borrow money? If yes, how much money needs to be borrowed? $4,000 (2) When does the money need to be borrowed? When will the loan be repaid? Account Receivable (1 month old) $2,000 $2,000 $1.000 Account Receivable (3 month old) Total Cash Inflows Q3. Fill in the blanks of Table 1: Monthly Cash Outflows and Table 2: Monthly Cash Inflows. Then, use the information to generate Table3: Pro-Forma Cash Flow Budget and answer the following questions. (10 points in total) Table 1: AgBiz Estimated Monthly Cash Outflows (Jan.-Apr:) Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Item Feb Mar Jan $8,000 Apr Sales $7,000 Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Purchases(S) $1,500 $4,000 $5,000 $7,000 $4,000 Table 3: Pro-Forma Cash Flow Budget $1,000 $1,000 $1,000 $1,000 Item Initial Cash Balance Jan $1,000 Feb $1,000 Mar $1,000 Apr $1,000 Payment of Account Payable Payment of Overhead Total Cash Outflows Inventory Levels Cash Inflow $5,000 Total cash available Cash Outflow Assumptions: 1. The inventory turnover rate is 12. 2. Inventory is equal to current month's purchases + previous month's purchases 3. Cost of goods sold=25% of sales 4. Account payable turnover ratio=6. Net Cash Need Borrowings End Cash Balance $1,000 $1.000 $1.000 Cumulative borrowings (Hint: These three tables are consistent. You are able to get cash inflow from table 2 and cash outflow from table 3) Table 2: AgBiz Estimated Cash Inflows (Jan. - Apr.) Feb Item Sales Apr Jan $8.000 Mar $7,000 Based on the above Pro-Forma Cash Flow Budget, answer the following two questions: Cash Sales (S) $1,750 (1) Does the business need to borrow money? If yes, how much money needs to be borrowed? $4,000 (2) When does the money need to be borrowed? When will the loan be repaid? Account Receivable (1 month old) $2,000 $2,000 $1.000 Account Receivable (3 month old) Total Cash Inflows