The company XYZ collected the following data points (all in thousands) for July, August, and September. The cash receipts will be $500, $550, and $800 for July, August, and September. The payments for labor and raw materials will be $150 per month. General and administrative salaries will be $100 a month; lease payments under long-term lease contracts will be $200 a month; depreciation charges will be $100 a month; income tax payments of $800 will be due in August; and a progress payment of $400 on a new design studio must be paid in September. Given the cash budget information provided above, determine the maximum amount of financing needed over the three-month forecast period. Assume a beginning balance of $700 and a minimum cash requirement (Target Balance) of $300.

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To determine the maximum amount of financing needed over the threemonth forecast period we need to c... View the full answer