You are a relatlvely recent hire to Hartz & Company, a local manufacturer of plumbing supply products. You have been asked to prepare a condensed statement of cash flows for the months of November and December of the current year for presentation to the company's management.

Assume the cash balance at November $1$ will be $$84,000.$ It is the company's policy to malntaln a minimum cash balance of $$50,000$ at the end of each month. Cash recelpts $($from cash sales and collectlon of accounts recelvable$)$ are projected to be $$556,000$ for November and $$455,000$ for December. Cash disbursements $($sales commlsslons, advertislng, dellvery expense, wages, utilitles, etc.$)$ prior to financing actlvity are scheduled to be $$472,500$ In November and $$588,000$ in December.

Short$-$term borrowing, when needed, is done at the beginning of the month In Increments of $$1,000.$ The annual Interest rate on any such loans is estimated to be $12\%.$ Interest on any outstanding short$-$term loans is paid In cash at the end of the month. Repayments of princlpal $($If any$)$ are assumed to occur at the end of the month. As of November $1,$ the company has a $$50,000$ long$-$term loan from the local bank. This loan, including interest $($at $12\%$ per year$)$ for the month of November, is payable at the end of November.

Requlred:

Use the preceding information to prepare the cash budget for November and December. $($Hint: The December $31$ cash balance should be $$50,330.)($Enter financing and interest payments as negatlve amounts.$)$

$\backslash$table$[[$Cartz & Co$.,],[$For November and December,$],[$Cash balance, beginning,November,December$],[$Add: Cash receipts,,$],[$Total cash available,,$],[$Cash disbursements, prior to financing,,$],[$Add: Minimum cash balance,,$],[$Total cash needed,,$],[$Excess $($deficiency of$)$ cash, before financing effects,,$],[$Financing:$,,],[$Short$-$term borrowing, beginning of month,,$],[$Repayments $($long$-$term loan principal$),$ end of month,,$],[$Cash interest, end of month,,$],[$Total effects of financing,,$],[$Ending cash balance,,$]]$