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AT&T LTE 1496 10:41 PM online.siu.edu Information Using the following information based on expected...

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AT&T LTE 1496 10:41 PM online.siu.edu Information Using the following information based on expected sales to forecast the monthly cash collections, accounts receivable balance, monthly cash disbursements, net cash flows, and cash surplus / deficit at the end of each month in the fourth quarter of 2017 (October December 2017). Do not allow your firm to have a cash balance below the minimum cash balance and only borrow what you need. ALL SALES ARE MADE ON CREDIT a. In September 2017, sales were $50,000 b. The firm's total sales in 2016 were $2,028,000. The firm's accounts receivable balance on December 31, 2015 was $35,000. The firm's accounts receivable balance on December 31, 2016 was $65,000 C. Accounts payable are 60% of sales d. Operating expenses are 10% of sales e. The firm plans to purchase equipment in October costing $125,000 f. Beginning Cash Balance in October- $25,000 g. Minimum Cash Balance = $5,000 h, Assume there is an annual interest rate of 18% on short term debt and that the firm starts with no short term borrowing i. Sales are expected to be $40,000 for October 2017, $400,000 for November 2017, and $100,000 for December 2017

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