Woodland Manufacturing produces a variety of industrial valves. The company is preparing its cash budget for the upcoming third quarter. The following transactions are expected to occur:

View the expected transactions.

Requirement

Prepare a combined cash budget for Woodland Manufacturing for the third quarter, with a column for each month and for the quarter total.

$($If an input field is not used in the table, leave the input field empty; do not enter a zero. Use parentheses or a minus sign for negative cash balances.$)$

Expected Transactions

a$.$ Cash collections from sales in July, August, and September, are projected to be $$94,000,$$$157,000,$ and $$122,000$

respectively.

b$.$ Cash payments for the upcoming third quarter are projected to be $$149,000$ in July, $$102,000$ in August, and $$138,000$ in

September.

c$.$ The cash balance as of the first day of the third quarter is projected to be $$33,000.$

d$.$ Woodland Manufacturing has a policy that they must maintain a minimum cash balance of $$23,000.$

The company has a line of credit with the local bank that allows it to borrow funds in months that it would not otherwise have

a minimum balance of $$23,000.$ If the company has more than $$23,000$ at the end of any given month, it uses the excess

funds to pay off any outstanding line of credit balance. Each month, Woodland Manufacturing pays interest on the

prior month's line of credit ending balance. The actual interest rate that Woodland Manufacturing will pay floats since it is tied

to the prime rate. However, the interest rate paid during the budget period is expected to be $1\%$ of the prior month's line of

credit ending balance $($if the company did not have an outstanding balance at the end of the prior month, then Woodland

Manufacturing does not have to pay any interest$).$ All line of credit borrowings are taken or paid off on the first day of the

month. As of the first day of the third quarter, Woodland Manufacturing did not have a balance on its line of credit.