Cash Budget Sharpe Corporation's projected sales first 8 month of 2006 are:

Of Sharp's sales, 10% is for cash, another 60% is collected in the month following sales, and 30% is collected in the second month following sales. Nov and Dec sales for 2005 were $220,000 and $175,000 respectively.
Sharp purchases its raw materials 2 months in advance of its sales equal to 60% of their final sale price. The supplier is paid one month after delivery is made. For example, purchases for April sales are made in February, and payment is made in March.
In addition, Sharpe pays $10,000 per month rent and $20,000 per month for other expenses. Tax repayments of $22,500 are made quarterly, beginning in March.
The company's cash on Dec 31, 2005 was $22,000. This is the minimum balance the firm would like to maintain. Any borrowing that is needed to maintain this minimum is paid off in the subsequent month if there is sufficient cash. Interest on short-term loans (12%) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects to have a need for an additional $60,500, these funds would be borrowed at the beginning of April with interest of $605 (.12 x 1/12 x $60,500) owed for April and paid for at the beginning of May.
A) Prepare a cash budget for Sharpe covering the first 7 months of 2006
B) Sharpe has $200,000 in notes payable due in July that must be repaid or be renegotiated for an extension. Will Firm have ample cash to repay thenotes?

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January S90,000 February 120,000 270,000 March 15,000 uly 225,000 Apri 240,000 May 300,000 August 150,000