What was done mathematically to compute and get the Repayment amounts of $11,000 or -$11,000, $208,000 or -$208,000, and $219,000 or -$219,000 in the Cash Budget? Can you all show me the numbers used and the step by step work involved to get these values, please? Thank you!

Cash management policies: Desired minimum ending cash balance each month: $35,000 The company has a line of credit with a bank. The company can borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and we assume a simple interest calculation (not compounded). At the end of each month, the company pays the bank as much of the loan as possible (increments of $1,000), while still retaining at least $35,000 in cash. For simplicity, the company pays the bank the interest related to the borrowing for one month at the beginning of the next month. For example, the interest on any borrowing in June is paid in July. Part 1 Information 30% 70% 50% 50% 20 21 FINANCE MANAGER PRIVATE INFORMATION 22 Percent sales collected in month of sale 23 Percent sales collected in month after sale 24 25 Percent of inventory purchases paid in month of purchase 26 Percent of inventory purchases paid in month after purchase 27 28 Percent of operating expenses paid in month of purchase 29 Percent of operating expenses paid in month after purchase 30 31 Desired minimum ending cash balance each month 32 Borrow in increments of 33 Monthly interest rate on borrowings (not compounded) 100% 0% $ $ 35,000 1,000 1% Sales Budget 1 2 3 4 Quarter July $600,000 August September $910,000 $475,000 5 Sales 6 $1,985,000 8 8 Quarter $340,000 Schedule of Cash Collections July August September $340,000 $180,000 $420,000 $273,000 $637,000 9 June sales (A/R From Beginning Balance Sheet) 10 July sales - Collected in Current Month 11 July sales - Collected in Following Month 12 August sales - Collected in Current Month 13 August sales - Collected in Following Month 14 September sales - Collected in Current Month 15 Total Expected Cash Collections $180,000 $420,000 $273,000 $637,000 $142,500 $142,500 $779,500 $520,000 $693,000 $1,992,500 17 18 19 Total Sales for the Quarter 20 A/R at the end of the Quarter September Sales Still not Collected) $ 1,985,000 $ 332,500 Inventory Purchase Budget July August September October $ 600,000 $ 910,000 $ 475,000 $ 385,000 45% 45% 45% 45% $ 270,000 $ 409,500 $ 213,750 $ 173,250 3 4 5 Sales 6 Cost of Merchandise as % of Sales 7 Budgeted Cost of Merchandise Sold 8 9 Following Month's COGS 10 Desired Ending Inventory % 11 Desired Ending Inventory Dollars 12 13 Budgeted Cost of Merchandise Sold 14 Plus Desired Ending Inventory 15 Total Inventory Needs 16 Less Beginning Inventory 17 Required Purchases $ 409,500 $ 213,750 $ 173,250 20% 20% 20% 81,900 42,750 34,650 270,000 409,500 213,750 81,900 42,750 34,650 351,900 452,250 248,400 50,000 81,900 42,750 $ 301,900 $ 370,350 $ 205,650 18 19 20 21 20 21 22 Schedule of Expected Cash Disbursements - Purchases 23 July August September 24 June Purchases (A/P From Balance Sheet) $ 130,000 $ 25 July Purchases $150,950 $ 150,950 $ 26 August Purchases $ 185,175 $ 185,175 $ 27 September Purchases $ 102,825 $ 28 Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ 29 30 31 32 Cost of Merchandise Sold for the Quarter $ 33 Ending Inventory at the end of the Quarter $ 34 Ending A/P at the end of the Quarter $ Quarter 130,000 301,900 370,350 102,825 905,075 A BABA 893,250 34,650 102,825 1 2 3 4 5 Selling and Administrative Budget July August September Quarter $ 600,000 $ 910,000 $475,000 $1,985,000 5% 5% 5% 5% 8% 8% 8% 8% 5 6 Sales 7 Shipping as a Percentage of Sales 8 Other Expenses as a Percentage of Sales 9 10 11 Variable Expenses: 12 Shipping 13 Other Expenses 14 Total Variable Expenses 15 Fixed Expenses: 16 Salaries and Wages 17 Advertising 18 Prepaid Insurance 19 Depreciation 20 Total Fixed Expesnes 21 Total Selling and Admin Expenses 22 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 224,750 255,000 150,000 9,000 75,000 489,000 747,050 28,000 213,000 28,000 253,300 28,000 196,750 84,000 663,050 22 23 Less Noncash Items (Depreciation and Prepaid Ins) 24 Total Cash Disbursements 25 26 27 28 Prepaid Insurance That Is Expensed During the Quarter 29 Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000 July 40,000 520,000 560,000 Cash Budget August September 35,050 35,435 693,000 779,500 728,050 814,935 Quarter 110,485 1,992,500 2,102,985 288,000 196,750 3 4 5 6 Cash Balance: Beginning 7 Add Cash Collections (From Sales Budget) 8 Total cash Available 9 Less Cash Disbursements 10 For Inventory (From Purchasing Budget) 11 For Operating Expenses (From Selling and Admin Budg 12 For Equipment 13 For Cash Dividends 14 For Interest (From Previous Month's Borrowing) 15 Total Cash Disbursements 16 Excess (Deficiency) of Cash 17 Financing 18 Borrowing 19 Repayment 20 Total Financing 21 Cash Balance: Ending 22 280,950 213,000 200,000 50,000 0 $ 743,950 (183,950) 336,125 253,300 90,000 0 2,190 $ 681,615 46,435 0 2,080 486,830 328,105 905,075 663,050 290,000 50,000 4,270 1,912,395 190,590 219,000 219,000 35,050 (11,000) (11,000) 35,435 (208,000) (208,000) 120,105 (219,000) 0 190,590 Cash management policies: Desired minimum ending cash balance each month: $35,000 The company has a line of credit with a bank. The company can borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and we assume a simple interest calculation (not compounded). At the end of each month, the company pays the bank as much of the loan as possible (increments of $1,000), while still retaining at least $35,000 in cash. For simplicity, the company pays the bank the interest related to the borrowing for one month at the beginning of the next month. For example, the interest on any borrowing in June is paid in July. Part 1 Information 30% 70% 50% 50% 20 21 FINANCE MANAGER PRIVATE INFORMATION 22 Percent sales collected in month of sale 23 Percent sales collected in month after sale 24 25 Percent of inventory purchases paid in month of purchase 26 Percent of inventory purchases paid in month after purchase 27 28 Percent of operating expenses paid in month of purchase 29 Percent of operating expenses paid in month after purchase 30 31 Desired minimum ending cash balance each month 32 Borrow in increments of 33 Monthly interest rate on borrowings (not compounded) 100% 0% $ $ 35,000 1,000 1% Sales Budget 1 2 3 4 Quarter July $600,000 August September $910,000 $475,000 5 Sales 6 $1,985,000 8 8 Quarter $340,000 Schedule of Cash Collections July August September $340,000 $180,000 $420,000 $273,000 $637,000 9 June sales (A/R From Beginning Balance Sheet) 10 July sales - Collected in Current Month 11 July sales - Collected in Following Month 12 August sales - Collected in Current Month 13 August sales - Collected in Following Month 14 September sales - Collected in Current Month 15 Total Expected Cash Collections $180,000 $420,000 $273,000 $637,000 $142,500 $142,500 $779,500 $520,000 $693,000 $1,992,500 17 18 19 Total Sales for the Quarter 20 A/R at the end of the Quarter September Sales Still not Collected) $ 1,985,000 $ 332,500 Inventory Purchase Budget July August September October $ 600,000 $ 910,000 $ 475,000 $ 385,000 45% 45% 45% 45% $ 270,000 $ 409,500 $ 213,750 $ 173,250 3 4 5 Sales 6 Cost of Merchandise as % of Sales 7 Budgeted Cost of Merchandise Sold 8 9 Following Month's COGS 10 Desired Ending Inventory % 11 Desired Ending Inventory Dollars 12 13 Budgeted Cost of Merchandise Sold 14 Plus Desired Ending Inventory 15 Total Inventory Needs 16 Less Beginning Inventory 17 Required Purchases $ 409,500 $ 213,750 $ 173,250 20% 20% 20% 81,900 42,750 34,650 270,000 409,500 213,750 81,900 42,750 34,650 351,900 452,250 248,400 50,000 81,900 42,750 $ 301,900 $ 370,350 $ 205,650 18 19 20 21 20 21 22 Schedule of Expected Cash Disbursements - Purchases 23 July August September 24 June Purchases (A/P From Balance Sheet) $ 130,000 $ 25 July Purchases $150,950 $ 150,950 $ 26 August Purchases $ 185,175 $ 185,175 $ 27 September Purchases $ 102,825 $ 28 Total Disbursements $ 280,950 $ 336,125 $ 288,000 $ 29 30 31 32 Cost of Merchandise Sold for the Quarter $ 33 Ending Inventory at the end of the Quarter $ 34 Ending A/P at the end of the Quarter $ Quarter 130,000 301,900 370,350 102,825 905,075 A BABA 893,250 34,650 102,825 1 2 3 4 5 Selling and Administrative Budget July August September Quarter $ 600,000 $ 910,000 $475,000 $1,985,000 5% 5% 5% 5% 8% 8% 8% 8% 5 6 Sales 7 Shipping as a Percentage of Sales 8 Other Expenses as a Percentage of Sales 9 10 11 Variable Expenses: 12 Shipping 13 Other Expenses 14 Total Variable Expenses 15 Fixed Expenses: 16 Salaries and Wages 17 Advertising 18 Prepaid Insurance 19 Depreciation 20 Total Fixed Expesnes 21 Total Selling and Admin Expenses 22 30,000 48,000 78,000 45,500 72,800 118,300 23,750 38,000 61,750 99,250 158,800 258,050 85,000 50,000 3,000 25,000 163,000 241,000 85,000 50,000 3,000 25,000 163,000 281,300 85,000 50,000 3,000 25,000 163,000 224,750 255,000 150,000 9,000 75,000 489,000 747,050 28,000 213,000 28,000 253,300 28,000 196,750 84,000 663,050 22 23 Less Noncash Items (Depreciation and Prepaid Ins) 24 Total Cash Disbursements 25 26 27 28 Prepaid Insurance That Is Expensed During the Quarter 29 Depreciation Expense Recognized During the Quarter $ $ 9,000 75,000 July 40,000 520,000 560,000 Cash Budget August September 35,050 35,435 693,000 779,500 728,050 814,935 Quarter 110,485 1,992,500 2,102,985 288,000 196,750 3 4 5 6 Cash Balance: Beginning 7 Add Cash Collections (From Sales Budget) 8 Total cash Available 9 Less Cash Disbursements 10 For Inventory (From Purchasing Budget) 11 For Operating Expenses (From Selling and Admin Budg 12 For Equipment 13 For Cash Dividends 14 For Interest (From Previous Month's Borrowing) 15 Total Cash Disbursements 16 Excess (Deficiency) of Cash 17 Financing 18 Borrowing 19 Repayment 20 Total Financing 21 Cash Balance: Ending 22 280,950 213,000 200,000 50,000 0 $ 743,950 (183,950) 336,125 253,300 90,000 0 2,190 $ 681,615 46,435 0 2,080 486,830 328,105 905,075 663,050 290,000 50,000 4,270 1,912,395 190,590 219,000 219,000 35,050 (11,000) (11,000) 35,435 (208,000) (208,000) 120,105 (219,000) 0 190,590