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This is the first year in business for OUR Mfg. Company. They want to have...

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Accounting

This is the first year in business for OUR Mfg. Company. They want to have a minimum cash balance of $2,000 at the end of each month. For their first month of operation (January), they project cash sales of $80,000 and credit sales of $100,000. They estimate that 60% of their credit customers will pay in the same month that they buy. OUR Mfg. also estimates they will spend $138,000 in cash on buying inventory and paying other operating expenses. Assume Jan. 1 cash balance is -0-

(a) What will the estimated cash balance be on January 31 BEFORE they borrow any money? $______

(b) How much money will they need to borrow to have a minimum of $2,000 on Jan. 31? $________________

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