Us MS Excel to compute.

122-14 Dorothy Koehl recently leased space in the Southside Mall and opened Budgeting business, Koehl's Doll Shop. Business has been good, but Koehl has free run out of cash. This has necessitated late payment on certain orders, which turn, is beginning to cause a problem with suppliers. Koehl plans to burn from the bank to have cash ready as needed, but first she needs a forecast : just how much she must borrow. Accordingly, she has asked you to prepare cash budget for the critical period around Christmas, when needs will be espel cially high. Sale made on a cash basis only. Koehl's purchases must be paid for dur- ing the following month. Koehl pays herself a salary of $4,800 per month, and the rent per month. In addition, she must make a tax payment of $12,000 in December. The current cash on hand (on December 1) is $400, but Koehl has agreed to maintain an average bank balance of $6,000this is her target cash bal- ance. (Disregard till cash, which is insignificant because Koehl keeps only a small amount on hand in order to lessen the chances of robbery.) The estimated sales and purchases for December, January, and February are shown below. Purchases during November amounted to $140,000 Sales Purchases December January February $160,000 40,000 60,000 $40.000 40,000 40,000 a. Prepare a cash budget for December, January, and February b. Now, suppose Koehl were to start selling on a credit basis on December 1, giv- ing customers 30 days to pay. All customers accept these terms, and all other facts in the problem are unchanged. What would the company's loan require ments be at the end of December in this case? (Hint: The calculations required to answer this question are minimal.)