Using the information provided, construct a monthly cash budget for October through December 2017. Based on your analysis, will Noble enjoy a surplus of cash, or require external financing?

Construct a pro forma income statement for the first fiscal quarter of 2018 (Oct. through Dec. 2017) and a pro forma balance sheet as of December 31, 2017. What is your estimated external funding required for December 31?

Does the December 31, 2017 estimated external financing equal your cash surplus (deficit) for this date from your cash budget?

Based on your answers above, construct a cash flow forecast for Noble for the period October through December 2017.

NOBLE EQUIPMENT CORP. Facts and assumptions Sales (20 percent for cash, the rest on 30-day credit ters): 2017 Actual 2017 Projected July August September October November December 76,000 88,000 266,000 125,000 51.000 53,000 Purchases (all on 60 day terms) 2017 Actual 2017 Projected July August September October November December 116,000 122,000 257,000 62,000 27.000 26,000 15.000 Salaries payable monthly 20,000 Principal payment on debt duc in December 25.700 Interest due in December 9.000 Dividend payable in December 15.000 Taxes payable in November 19.000 Addition to accumulated depreciation in Decembr000 Cash balance on October 1, 2017 34,000 Minimum desired cash balance NOBLE EQUIPMENT CORP. . INCOME STATEMENT ($thousands) Fiscal year ended September 30, 2017 Nct sales 1,581.6 Cost of goods soldi 1,0198.0 Gross profits 483.6 Selling and administrative expenses 240.0 Interest expense 18.0 Depreciation 16.0 Net profit before tax 209.6 Tax at 33% 69.2 Net protit after tax 140.4 BALANCE SHEET (S thousands) September 30, 2017 Assets Cash 34.0 Accounts receivable 212.8 Inventory 425.0 Total current assets 671.8 Gross fixed assets 135.0 Accumulated depreciation 52.0 Net fixed assets 83.0) Total assets 754.8 (1.0) 379.0 $5.0 Liabilities Bank loan Accounts payable Accrued expensest Current portion long-term delts Taxes payable Total current liabilities Long-term debt Shareholders' equily Total liabilities and equity 25.7 56.0 515.7 120.0) 119.1 754.8 1 Cost of goods sold consists entirely of items purchased during the quarter. 2 Selling and administrative expenses consist entirely of salaries, 3 Depreciation is straight-line at the rate of $4,000 per quarter 4 Accrued expenses are not expected to change in the last quarter. 5 $25.7 due December 2017. No payments for remainder of year