please provide answer with explanation in detail and attached spreadsheet if possible (Thanks)

Sample Minicase problem: Spreadsheet Problem 16-18.

Ch16 P18 Build a Model.xlsx

Rusty Spears, CEO of Rusty's Renovations, a custom building, and repair company, is preparing documentation for a line of credit request from his commercial banker. Among the required documents is a detailed sales forecast for parts of 2017 and 2018:

May

Jun

Jul

Aug

Sep

Oct

Nov

December

January

sales

$60,000

$130,000

$120,000

$100,000

$80,000

$60,000

$40,000

$30,000

labor and raw mat. estimates

$75,000

$95,000

$70,000

$60,000

$50,000

$20,000

$20,000

Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 15%; collections during the month following the sale, 65%; collections the second month following the sale, 20%. Payments for labor and raw materials are typically made during the month following the one in which these costs were incurred. Total costs for labor and raw materials are estimated for each month as shown in the table.

General and administrative salaries will amount to approximately $15,000 a month, lease payments under long-term lease contracts will be $5,000 a month; depreciation charges will be $7,500 a month; miscellaneous expenses will be $2,000 a month; income tax payments of $25,000 will be due in both September and December; and a progress payment of $80,000 on a new office suite must be paid in October. Cash on hand on July 1 will amount to $60,000, and a minimum cash balance of $40,000 will be maintained throughout the cash budget period.

a. Prepare a monthly cash budget for the last 6 months of 2017.

b. Prepare an estimate of the required financing (or excess funds) -that is, the amount of money Rusty's Renovations will need to borrow (or will have available to invest)-for each month during that period.