Use the following information to prepare a cash flow budget for a sheep and hay operation. The cash flow budget should include monthly values and totals for the entire year. Throughout the year, do not allow the cash balance to drop below $1,000. When operating money is needed, borrow in $1,000 increments (i.e. if $300 is needed, borrow $1,000; if $1,600 is needed, borrow $2,000). When the lambs are sold in September, calculate the total operating money that has been borrowed and pay it back with interest at an annual rate of 6%. You can use this template to set up the cash flow budget. (14 points)

January 1 cash balance: $17,500 Sheep sales income: $8,000 in May; $175,000 in September Hay sales income: $4,000 in February; $8,500 in July; $6,000 in November Non-farm income: $3,000 per month Hired labor: $1,600 per month Machinery repair: $2,000 per month from May through September (5 months) Pasture lease expense: $15,000 in December Feed expense: $1,400 in February Supplies expense: $500 per month Livestock expense: $4,000 in March Machinery hire: $2,000 per month from June through October (5 months) Fuel & oil expense: $1,200 in February, May, August, and November Property taxes: $1,200 in May and November Utilities expense: $3,600 per month from June through September (4 months) Other farm operating expense: $500 per month Ram purchase expense: $15,000 in September Family living expenses: $6,000 per month Income taxes: $1,500 in March, June, September, and December Long-term debt principal payment: $18,500 in September Long-term debt interest payment: $3,200 in September House payments (principal & interest): $1,300 per month