Current Attempt in Progress Tyrin Corp's accounting team is putting together the cash budget for the fourth quarter of the current year. Budgeted cash receipts and cash disbursements for DM are listed below, along with other budgeted costs and additional information. October November December Budgeted cash receipts $315,000 $302,000 $327,000 Budgeted cash disbursements for DM purchases 45,000 67,200 50,700 Budgeted DL and MOH cost 138,200 144,400 150,000 Budgeted SG&A cost 125,300 128,500 124,200 Beginning cash balance on October 1 is $22,300; minimum required balance is $20,000. . Budgeted MOH cost includes $12,000 of depreciation each month. Budgeted SG&A cost includes $13,000 of depreciation each month. A line of credit is available from the bank, subject to a 4% annual interest rate; withdrawals must be made on the first of the month, and repayments must be made on the last day of the month. The withdrawals and repayments must be in $500 increments. If excess cash is available, the following spending priorities have been identified (in order of priority). 1. Equipment purchase of $30,000 (must be made at some point during this quarter with available cash or loan from the bank). Research and development of $10,000 per month (could be made for any number of months or none at all). 2. 3. Advertising of $5,000 per month (could be made for any number of months or none at all). Question / of 10 Cash Budget for the fourth quarter: -15 III Beginning balance Add: Cash receipts Cash available October November December Quarter $22,300 $53,800 $40,700 $22,300 315,000 302,000 327,000 944,000 $337,300 $355,800 $367,700 $966,300 Less: Cash disbursements for: Budgeted cash disbursements for DM purchases 45,000 67,200 50,700 162,900 Budgeted DL and MOH cost 126,200 132,400 138,000 396,600 Budgeted SG&A cost 112,300 115,500 111,200 339,000 Total cash disbursements $283,500 $315,100 $299,900 $898,500 Cash surplus/(deficiency) $53,800 $40,700 $67,800 $67,800 Less: Minimum balance requirement 20,000 20,000 20,000 20,000 Additional funds available/(needed) $33,800 $20,700 $47,800 $47,800 Loan balance beginning of month Loan draws/(payments) Loan balance end of month Interest Ending cash balance $53,800 $40,700 $67,800 $67,800 Based on your budget above, which of the additional priorities would the company be able to afford, and in which month(s) could the company afford it/them? a. b. If you suggest additional spending in October, does that affect the company's minimum balance status in either November or December? If you suggest additional spending in November, does that affect the company's minimum balance status in December? Based on your budget above, which of the additional priorities would the company be able to afford, and in which month(s) could the company afford it/them? a. If you suggest additional spending in October, does that affect the company's minimum balance status in either November or December? b. If you suggest additional spending in November, does that affect the company's minimum balance status in December? B I UT T + eTextbook and Media III E 99 OWord(s) Explain how the company likely decided on its priority ranking for the three additional spending items. Based on your understanding of each of these items, does it seem feasible that any or all of them would have long-term (beyond one year) implications for the business? Explain. B I UT, T E 99 OWord(s)