The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. ABC has beginning cash on hand of $30,000 and wants to maintain this minimum cash level throughout the next year. Cash Cash Month Receipts Disbursements January $130,000 $120,000 February $90,000 $115,000 March $95,000 $145,000 April $115,000 $150,000 May $135,000 $165,000 June $145,000 $165,000 July $205,000 $185,000 August $225,000 $195,000 September $205,000 $170,000 October $180,000 $120,000 November $150,000 $120,000 December $70,000 $110,000 A. Will ABC need to borrow cash during the next year?

B. If the company does need cash, in which month will it first need to borrow cash?

C. In which month will the company have its highest loan balance?

D. Will the company have a debt balance at the end of the year?

Submit your calculations and answers in an Excel spreadsheet through Blackboard properly labeled.

Note: Extra bonus points if your Excel spreadsheet contains formulas that automatically calculate the draw down and pay back of the loan.