Q1

Please answer in Excel

Hall Ltd. is trying to decide whether it is going to need to take a loan in coming January to buy a new microcomputer system. The microcomputer will cost $10,980. The president, Kevin Hall, has collected the following information about her operations as at December 31: 1. Balance of selected ledger accounts: Cash $3,660 Accounts payable 7.300 2. Sales history and forecast (unit selling price, $12): October (actual) $54,900 November (actual) 41,480 December (actual) 54.900 January (forecast) 73.200 3. All sales are on credit and are due 30 days after the sale. 4. Cash payments for purchases are as follows: two-thirds in the month of purchase; one-third in the month after that. 5. Hall Ltd. collects 50% of a month's sales one month after the sale and 45% two months after the sale: 5% are uncollectible. 6. The company purchases inventory as required under terms of 2/10, net 30. It always takes the 2% discount, but records purchases at gross cost. 7. Inventory costs $6 per unit, gross. 8. Other expenses, all paid in cash as incurred, average about 30% of the sales dollar amount. Depreciation is part of these expenses and costs $3,660 per month. 9. Hall Ltd. keeps a minimum cash balance of $4,900. HOWE LTD, Cash Budget For the Month Ended January 31 . $