Question 2

Please use excel spreadsheet

Provide all formulas used to find solution

2. Management wants to know if there will be a need for short-term financing in February. Essential information is as follows: a. Estimated sales for January and February are $1 million and $800,000, respectively. b. Sixty percent of ales are for cash and 40 perceiat are credit sales that are collected the next month. c. Cash disbursements that vary with sales are 40 pereent of sales. d. Fixed operating dibbursements are $300,000 w month. e. Depreciation expense is 550,000 a month. f. A tax payment of $100,000 is due in January. g. A bond payment of $300,000 is owed and will be due in February. h. The cash balance at the beginning of January is $12,000. i. Management seeks a minimum cash balance of $10,000. 1. December eredit sales were $100.000