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$1($a$)$ Only the areas in BLUE will be graded

$\backslash$table$[[,\backslash$table$[[\%$ where$],[$applicable$]],$March,April,May,June,July$],[$ales$],[$ash sales$],[$ag $1$ month$],[$ag $2$ months$],[$ther income$],[$Total cash receipts$],[,,,,,,],[$isbursements$],[$urchases$],[$ent$],[$Vages and salaries$],[$ividends$],[$rincipal and interest$],[$urchase of new equipment$],[$axes due$],[$Total cash disbursements$],[,,,,,,],[$et cash flow$],[$dd: Beginning cash$],[$nding cash$],[$linimum cash$],[$equired total financing $($notes payable$)],[$xcess cash balance $($marketable securities$),,,,,,]]$

$1($b$)$

If the firm were to request a line of credit to cover needed financing for the period May, June and July, how large would this line have to be$?$ Explain your answer

Marigold Corporation had actual sales in March and April. Forecasted sales were computed for May, June and July. Both actual and forecasted sales are given in the table below.

The firm has a cash balance of $$2,000$ on May $1$ and wishes to maintain a minimum cash balance of $$5,000.$

Given the following assumptions and data in the table below, prepare and interpret a cash budget for the future months of May, June and July.

The firm makes $17\%$ of sales for cash, $57\%$ are collected in the next month, and the remaining $26\%$ are collected in the second month following sale.

The firm receives other income of $$2,000$ per month

The firm's actual or expected purchases, all made for cash, for the months of May through to July as given in the table below.

Rent is $$2,700$ per month

Wages and salaries are $8\%$ of the previous month's sales

Cash dividends of $$3,200$ will be paid in June.

Payment of principal and interest of $$3,500$ is due in June

A cash purchase of equipment costing $$5,900$ is scheduled in July.

Taxes of $$6,400$ are due in June.

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