QUESTION #2 CASH BUDGET Niles Co. requires a minimum S10.000 cash halanes anns are made to meet this requirement at 1% interese per month (paid at the end of the quarter), and loans are repaid at month's end from available funds. Beginning cash balance July I was $11.000. Cash Sales for July, August and September are forecasted at $22.000. S16,000, and $80,000. Collections from Credit Customers for July, August and Sentember are forecasted at $10.000. 58.000 and $11,000 Payments for purchases for the period are planned at $29.000. 25.000, and $16,000. A new delivery truck was purchased on July 1" in the amount of $32,000. Salaries were paid each month in the amount of $8.000. Rent for the office and the warehouse was $4,000 in total per month. The Bank has agreed to lend Niles up to $100,000 in $5,000 increments. The entire loan balance and outstanding interest must be repaid on September 30th Required: De a schedule of loan activity and a cash summary for July. August and September in order to determine if Niles can meet the bank requirement and repay the Loan by September 30th USH BUDGET FOR Beginning CASH BALANCE Add Cash Receipts: Cash Sales Collection of A/R Total Cash Receipts Less Cash Disbursements: Total Cash Disbursements Preliminary Cash Balance Add: Borrowings Less: Repayments of Borrowings Ending Cash Balance ILoan Balance