The ABC Corporation is planning to request a line of credit from its bank and wants to estimate its cash needs for the month of September. The following sales forecasts have been made for 2023:

SALES CASH

SALES

November $105,000

December $115,000

January $70,000

February $110,000

March $125,000

April $110,000

May $155,000

June $175,000

July $110,000

August $125,000

CREDIT SALES

November $128,000

December $138,000

January $94,000

February $114,000

March $75,000

April $112,000

May $124,000

June $118,000

July $100,000

August $55,000

PURCHASES

CASH PURCHASES

November $45,000

December $42,000

January $88,000

February $110,000

March $82,000

April $88,000

May $93,000

June $95,000

July $35,000

August $31,000

CREDIT PURCHASES

November $110,000

December $80,000

January $95,000

February $114,000

March $100,000

April $129,000

May $92,000

June $108,000

July $60,000

August $75,000

WEEKS PER MONTH

November 4

December 5

January 4

February 4

March 5

April 4

May 5

June 4

July 4

August 5

THE RENT RECEIVED PER WEEK IS $100.00

THE RENT PAID PER WEEK IS $400.00

SALARIES EXPENSES PER MONTH ARE $17,200

PROMOTION EXPENSES PER WEEK. ARE $175.00 ON SOCIAL MEDIA, $225 ON NEWSPAPERS, AND $315 IN OTHER PROMOTIONS. TOTAL $715 PER WEEK

OTHER EXPENDITURES ARE $3,900 PER MONTH

A CAPITAL EXPENDITURE OF $55,000 WILL BE PAID IN FEBRUARY.

ABC collects 85 percent of its credit sales in the month after the credit sale, 10 percent two months following the credit sale, and the remaining 5 percent three months following the sale.

The supplier is paid 85% one month after credit purchases are made and 15% two months after credit purchases are made.

The companys cash balance as of JAN 01, 2023, was an investment of $65,000.

A minimum balance of $65,000 must be always maintained to satisfy the firms line-of-credit agreement with its bank.

Harrison has arranged with its bank for short-term credit at an interest rate of 12 percent per annum (1 percent per month) to be paid monthly. , Then, if the firm needs to borrow $50,000 at the end of April, then it will pay $500 in interest (.01 * $50,000) at the end of May.

Prepare a cash budget for the first six months of 2023 (January TO JUNE) . Prepare a cash budget for the first six months of 2021 (January to June) Assume that the ending cash balance for December 2020 is $25,000 and that you want to maintain a balance of $22,000.