Total Cash Inflows Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio...

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Total Cash Inflows Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Table 3: Pro-Forma Cash Flow Budget Item Jan Feb Mar Apr Initial Cash Balance $2,000 $2,000 $2,000 $2,000 Cash Inflow Total cash available Cash Outflow Net Cash Need Borrowings End Cash Balance $1,000 $1,000 $1,000 $2,000 Cumulative borrowings (Hint: These three tables are consistent. You are able to get cash inflow from table 2 and cash outflow from table 3) Based on the above Pro-Forma Cash Flow Budget, answer the following two questions: (1) Does the business need to borrow money? If yes, how much money needs to be borrowed? (2) When does the money need to be borrowed? When will the loan be repaid? Total Cash Inflows Assumptions: 1. Sales are 1/4 cash, and 3/4 credits. 2. Account Receivable ratio is 4. Table 3: Pro-Forma Cash Flow Budget Item Jan Feb Mar Apr Initial Cash Balance $2,000 $2,000 $2,000 $2,000 Cash Inflow Total cash available Cash Outflow Net Cash Need Borrowings End Cash Balance $1,000 $1,000 $1,000 $2,000 Cumulative borrowings (Hint: These three tables are consistent. You are able to get cash inflow from table 2 and cash outflow from table 3) Based on the above Pro-Forma Cash Flow Budget, answer the following two questions: (1) Does the business need to borrow money? If yes, how much money needs to be borrowed? (2) When does the money need to be borrowed? When will the loan be repaid?