What would the short-term financing section of the cash budget look like using Excel for the calculations?

E22-27. Cash Budget & Short-Term Financing

Presented are partial October, November, and December cash budgets for Holiday Events:

Holiday Events

Partial Cash Budgets

For the months of October, November, and December

October November December Total

Cash balance, beginning 23,000

Collections on sales 35,000 40,000 80,000

Cash available for operations

Disbursements for operations -50,000 -60,000 -40,000

Ending cash before borrowings or replacements

Short-term finance:

New loans

Repayments

Interest

Cash balance, ending

Loans are obtained in increments of $1,000 at the start of each month to maintain a minimum end-of-month balance of $12,000. Interest is one percent simple interest (no compounding) per month, payable when the loan is repaid. Repayments are made as soon as possible, subject to the minimum end-of-month balance.