Transcribed image text: You are a relatively recent hire to Hartz \& Company, a local manufacturer of plumbing supply products. You have been asked to prepare a condensed statement of cash flows for the months of November and December of the current year for presentation to the company's management. Assume the cash balance at November 1 will be $88,000. It is the company's policy to maintain a minimum cash balance of $55,000 at the end of each month. Cash receipts (from cash sales and collection of accounts receivable) are projected to be $572,000 for November and $470,000 for December. Cash disbursements (sales commissions, advertising, delivery expense, wages, utilities, etc.) prior to financing activity are scheduled to be $485,450 in November and $604,000 in December. Short-term borrowing, when needed, is done at the beginning of the month in increments of $1,000. The annual interest rate on any such loans is estimated to be 12%. Interest on any outstanding short-term loans is paid in cash at the end of the month. Repayments of principal (if any) are assumed to occur at the end of the month. As of November 1 , the company has a $55,000 long-term loan from the local bank. This loan, including interest (at 12% per year) for the month of November, is payable at the end of November. Required: Use the preceding information to prepare the cash budget for November and December. (Hint: The December 31 cash balance should be $55,290. ) (Enter financing and interest payments as negative amounts.)