Question 1 (4 points) 1. Farrah's Foodstuffs Ltd. has the following projected cash flows for the next two months: (000s) Cash inflows Cash outflows November $530 505 December $477 538 The company has a target cash balance of $15,000 and will start November with $23,000. What is the company's forecasted cumulative surplus or borrowing requirements for November and December? Prepare a cash budget for the months of November and December taking all the target ending cash balance numbers into account (4 Marks) Question 3 (4 points) Joe's Construction Ltd. is in a highly seasonal business, and the following summary balance sheet data show its assets and liabilities at peak and off-peak seasons (in thousands of dollars). (4 Marks) Peak Off-peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 40 Spontaneous liabilities Short-term bank debt Long-term debt Common equity Total claims $ 30 50 300 310 $690 $ 10 0 300 310 $620 What type of working capital policy does Joe's Construction likely follow? Briefly explain