Note from Miranda: before you joined, I was in the midst of attempting to determine whether Plants required additional financing. I had a call with our bankers to chat through some of their questions, but I was unable to answer them all. They suggested completing a simple cash forecast would help and they provided the template below. Can you please assist me in completing the forecast and drafting answers to the outstanding questions?

Projected Cash Flows for January 2022:

Payroll (2 times, at $2,750)

Mortgage (1 time, at $3,500)

Sales projection (weekly, at $550)

Bills (end of month, $5,850)

Bankers Questions:

1.What is the current cash position of the company, and what do you anticipate having at the end of the month? (2 marks)

2.Are you able to make next months mortgage payment? How much would you need to borrow? (2 marks)

Mirandas Questions:

1.If we borrowed from a line of credit to fund 3 months of funding, how much should we ask for? (2 marks)

2.If the line of credit has an interest rate of 5.05%, what would the interest charge be if we took your recommended amount (from question 1) for the 3 months period of January 1 March 31, 2022. (2 marks)

Cash Forecast Template ( 6 marks) Cash Forecast Template ( 6 marks)