The ACME Toy Company has projected sales as follows:
Sales		July	August	Sept	Oct	Nov	Dec	January
		$ 150,000	$ 175,000	$ 225,000	$ 230,000	$ 275,000	$ 250,000	$ 300,000
Other information:
1. ACME collects 25% of its sales in the month of the sale, 50% in the second month, 15% in the third month and 10% in the fourth..
2. ACME purchases and pays for raw materials one month in advance of its sales. The purchases are 60% of sales.
3. ACME pays $10,000 rent each month for its factory.
4. ACME pays $7,500 other costs each month.
5. ACME pays 5% sales tax on its sales one month after the sales.
5. A tax prepayment of $25,000 is due in October.
6. ACME has a line of credit with it's local bank for $500,000 at 12% interest, and must maintain a bank balance of $15,000
7. At September 30th, it had borrowed $40,000 on its LOC, and had a bank balance of $15,000
a. Prepare a cash budget for the last quarter of the year (October - December)
b. Will the ACME have its LOC paid off by 12/31?

Please show Excel Formulas when answering this question

G A 1 Chapter 17 Name: 2 3 The ACME Toy Company has projected sales as follows: 4 5 Sales July August Sept 6 2 S 150,000 $175,000 $225,000 $ Oct Nov Dec January 230,000 $275,000 $250,000 S 300,000 9 Other information 10 1. ACME collects 25% of its sales in the month of the sale, 50% in the second month, 15% in the third month and 10% in the fourth.. 1112 ACME purchases and pays for raw materials one month in advance of its sales. The purchases are 60% of sales 12 3. ACME pays $10,000 rent each month for its factory 1314, ACME pays $7,500 other costs each month. 14 5. ACME pays 5% sales tax on its sales one month after the sales. 15 5. A tax prepayment of $25,000 is due in October. 16 6. ACME has a line of credit with it's local bank for $500,000 at 12% Interest, and must maintain a bank balance of $15,000 17 7. At September 30th, it had borrowed $40,000 on its Loc, and had a bank balance of $15,000 18 19 . Prepare a cash budget for the last quarter of the year (October - December) 20 b. Will the ACME have its LoC paid off by 12/31? 21 $ 23 24 25 25 27 28 29 30 31 32 33 Grades Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 10 Chapter 19 Tax Probe G A 1 Chapter 17 Name: 2 3 The ACME Toy Company has projected sales as follows: 4 5 Sales July August Sept 6 2 S 150,000 $175,000 $225,000 $ Oct Nov Dec January 230,000 $275,000 $250,000 S 300,000 9 Other information 10 1. ACME collects 25% of its sales in the month of the sale, 50% in the second month, 15% in the third month and 10% in the fourth.. 1112 ACME purchases and pays for raw materials one month in advance of its sales. The purchases are 60% of sales 12 3. ACME pays $10,000 rent each month for its factory 1314, ACME pays $7,500 other costs each month. 14 5. ACME pays 5% sales tax on its sales one month after the sales. 15 5. A tax prepayment of $25,000 is due in October. 16 6. ACME has a line of credit with it's local bank for $500,000 at 12% Interest, and must maintain a bank balance of $15,000 17 7. At September 30th, it had borrowed $40,000 on its Loc, and had a bank balance of $15,000 18 19 . Prepare a cash budget for the last quarter of the year (October - December) 20 b. Will the ACME have its LoC paid off by 12/31? 21 $ 23 24 25 25 27 28 29 30 31 32 33 Grades Chapter 11 Chapter 12 Chapter 13 Chapter 14 Chapter 15 Chapter 16 Chapter 17 Chapter 10 Chapter 19 Tax Probe