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Develop a spreadsheet with a cash budget with lagging collections. determine the net cash flows for the year. Forecast the cumulative dollar amount of the external financing required for the year. you are required to prepare a 3 page analysis of the results of your cash budget.

Middletown construction, Inc has estimated the following sales forecast over the next 12 months (they close in the winter): January $0, February $0, March $275,000 April $275,000 May $312,000 June $417,000 July $714,000 August $611,000 September $827,000 October $500,000 November $116,000 December $0 The company also gathered the following collection estimates regarding the forecast sales: payment collection within the month of sale =20% payment collection the month following sales =60% payments for raw materials and labor costs are paid the month after the purchase and are estimated as follows: March$220,000 April $240,000 May $225,000 June $287,000 July $350,000 August $415,000 September $242,000 October $214,000 November $222,000. Additional financial information is as follows administrative salaries will approximately amount to $30,000 a month lease payment are around $10,000 a month a one time new plant investment for $23,000 is expected to incur and be paid in June. income tax payments estimated to be around $50,000 will be due in both June and September. Miscellaneous costs are estimated to be around $5,000 a month. cash on hand on March 1 will be around $50,000, and a minimum cash balance of $50,000 shall be on hand at all times. based on the information will the company need outside financing? when is the line of credit the highest for MCI will need. If you were a bank manager, would you want MCI as your client why or why not.

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