Start with the partial model in the file attached. Marvel Pence, CEO of Marvels 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 2020 and 2021:

Estimates obtained from the credit and collection department are as follows: collections within the month of sale, 20%; collections during the month following the sale, 60%; collections the second month following the sale, 25%. 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 $25,000 a month; lease payments under long-term lease contracts will be $7,000 a month; depreciation charges will be $8,000 a month; miscellaneous expenses will be $5,000 a month; income tax payments of $30,000 will be due in both August and December; and a progress payment of $95,000 on a new office suite must be paid in October. Cash on hand on July 1 will amount to $70,000, and a minimum cash balance of $30,000 will be maintained throughout the cash budget period.

\begin{tabular}{|l|l|l|} \hline & Sales & Labor and Raw Materials \\ \hline May, 2020 & $75,000 & $80,000 \\ \hline June, 2020 & $115,000 & $75,000 \\ \hline July, 2020 & $145,000 & $105,000 \\ \hline August, 2020 & $125,000 & $85,000 \\ \hline September, 2020 & $120,000 & $65,000 \\ \hline October, 2020 & $95,000 & $70,000 \\ \hline November, 2020 & $75,000 & $30,000 \\ \hline December, 2020 & $55,000 & $35,000 \\ \hline January, 2021 & $45,000 & N/A \\ \hline \end{tabular} Input Data Sales, labor, and RM adjustment factor 0% a. Prepare a monthly cash budget for the last six months of the year. \begin{tabular}{|l|l|r|r|r|r|r|r|r|r|} \hline & May & June & July & \multicolumn{1}{|c|}{ August } & \multicolumn{1}{|c|}{ September } & October & November & December & January \\ \hline Original sales estimates & $75,000 & $115,000 & $145,000 & $125,000 & $120,000 & $95,000 & $75,000 & $55,000 & $45,000 \\ \hline Original labor and raw mat. estimates & $80,000 & $75,000 & $105,000 & $85,000 & $65,000 & $70,000 & $30,000 & $35,000 & \\ \hline \end{tabular} Forecasted Sales Sales (gross) Collections During month of sale During 1st month after sale During 2nd month after sale Total collections Purchases Labor and raw materials Payments for labor and raw materials Payments Payments for labor and raw materials General and administrative salaries Lease payments Miscellaneous expenses Income tax payments Design studio payment Total payments Net Cash Flows Cash on hand at start of forecast period Net cash flow (NCF): Total collections - Total payments Cumulative NCF: Prior month cumulative + this month's NCF Cash Surplus (or Loan Requirement) Target cash balance Surplus cash or loan needed: Cum NCF - Target cash Max. Loan b. Prepare an estimate of the required financing (or excess funds)-that is, the amount of money Marvel's Renovations will need to borrow (or will have available to invest)-for each month during that period