The following table includes quarterly working capital levels for your firm for the next year.

	Quarters
?($000)????????	1	2	3	4
Cash	104	104	104	104
Accounts Receivable	198	97	106	610
Inventory	205	504	908	53
Accounts Payable	110	103	99	105

If you choose to enter the year with $397,000 total in cash and maintain a minimum cash balance of $104,000?, what is your maximum?short-term borrowing?

This is the answer but I need someone to show me how to calculate this in excel. I need details for how the "cash at the beginning of the qrt" was calculated.

You must find the total working capital for each quarter and then subtract the permanent working? capital, which is the smallest working capital of the four quarters. This will give you the temporary working capital for each quarter.

The temporary working capital for each quarter are shown? below:

($000)		Q1		Q2		Q3		Q4
Cash	$	104	$	104	$	104	$	104
Accounts receivable		198		97		106		610
Inventory		205		504		908		53
Accounts payable		110		103		99		105
NWC	$	397	$	602	$	1,019	$	662
- Permanent WC needs		(397)		(397)		(397)		(397)
Temporary WC needs	$	0	$	205	$	622	$	265

?Below, we determine the maximum amount of? short-term borrowing needed if the firm enters the year with $397,000 in cash.

($000)		Q1		Q2		Q3		Q4
Cash at beginning of quarter	$	397	$	397	$	192	$	104
Minimum cash balance		104		104		104		104
Temporary working capital needs		0		205		622		265
Change in NWC				205		417		(357)
Financing
Starting available excess cash	$	293	$	293	$	88	$	0
- Increase (decrease) in NWC		0		205		417		(357)
+ Increase (decrease) ST Debt		0		0		329		(329)
= Ending excess cash	$	293	$	88	$	0	$	28
Ending total cash balance		397		192		104		132
Total short term borrowing		0		0		329		0