This assignment is not just about finding the right answer but to be able to describe or demonstrate the steps you have taken to prepare the solution. Marks are not awarded for the correct answer, but for:

• how you have attempted the question using excel,
• your ability in using excel function and formulas in setting up your answer and,
• your ability to provide a reflection (as detailed below).

AAA Company is preparing its 3rd quarter budget and provides the following data: Jul Cash collections Aug $50,000 Sep $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures O 19,000 Cash balance at June 30 is projected to be $4,000. The company is required to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and pays interest monthly at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. Loan balance should be repaid in increments of $5,000 when there is surplus cash. Using the format below, please complete the cash budget: Cash Budget Jul Aug Sep Beginning cash balance Cash collections Cash available Cash payments: Purchases of inventory Operating expenses Capital expenditures Total cash payments Ending cash balance before financing Minimum cash balance desired Cash excess/(deficiency) Financing Borrowing at end of month Principal payments at end of month Interest expense at 5% Total effects of financing Ending cash balance