(15 points) Your new business venture will begin operation on July 1, 20X3. You will hire...

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(15 points) Your new business venture will begin operation on July 1, 20X3. You will hire staff (costing $40,000/month) effective January 1, 20X3. Collections lag billing by 3 months (in other words, once you bill for a service, you must wait 90 days for the payment to be received). You will charge $100.00 per unit of business. Assume an 80% collection rate. Expected volume is shown in the table on the right. To start your business, you borrow $500,000 interest free that must be repaid monthly beginning February 1, 20X3 at a rate of $10,000 per month. How much cash will you have at the end of June 20X4? Monthly Month Year Volume July 20X3 1,000 August 20X3 1,000 September 20X3 1,000 October 20X3 1,100 November 20X3 1,100 December 20X3 1,100 January 20X4 1,200 February 20X4 1,200 March 20X4 1,200 April 20X4 1,300 May 20X4 1,300 June 20X4 1,300 (15 points) Your new business venture will begin operation on July 1, 20X3. You will hire staff (costing $40,000/month) effective January 1, 20X3. Collections lag billing by 3 months (in other words, once you bill for a service, you must wait 90 days for the payment to be received). You will charge $100.00 per unit of business. Assume an 80% collection rate. Expected volume is shown in the table on the right. To start your business, you borrow $500,000 interest free that must be repaid monthly beginning February 1, 20X3 at a rate of $10,000 per month. How much cash will you have at the end of June 20X4? Monthly Month Year Volume July 20X3 1,000 August 20X3 1,000 September 20X3 1,000 October 20X3 1,100 November 20X3 1,100 December 20X3 1,100 January 20X4 1,200 February 20X4 1,200 March 20X4 1,200 April 20X4 1,300 May 20X4 1,300 June 20X4 1,300