Taft, Inc. is planning its financing needs for the next three months. The company's estimated sales and purchases for the past three months, plus projected sales and purchases for the next three months, are shown below: Actual October November December $ 450,000 $ 550,000 $ 800,000 $ 400,000 $ 500,000 $ 350,000 Forecast January February # $ 400,000 $ 450,000 $ # $ 200,000 $ 300,000 $ Sales Purchases March 450,000 300,000 40% of Taft's sales are for cash. The company's Average Collection Period from customers is 60 days. It's standard pay terms with suppliers is 90 days. In addition, the company is planning the following cash expenditures: Wages Payable Each Month Taxes Payable End of March Interest Payable Each Month Dividend Payment in March 85,000 80,000 15,000 75,000 The company's cash balance on January 1st is $350,000. It desires a minimum cash balance of $200,000 at all times. a) Construct a monthly cash budget for January through March. b) Does the company need a loan to sustain its minimum cash balance? If so, how large should it be