The Sharpe Corporation's projected sales for the first eight months of 2017 are as follows:

Of Sharpe's sales, 10 percent are for cash, another 60 percent are collected in the month following the sale, and 30 percent are collected in the second month following the sale. November and December sales for 2016 were $220,000 and $175,000, respectively.
Sharpe's raw materials cost 60 percent of its product's final sales price and are purchased two months in advance of sale. The supplier is paid one month after it makes delivery. For example, purchases for April sales are made in February, and payment is made in March.
In addition, Sharpe pays $10,000 per month for rent and $20,000 per month for other expenditures. Tax prepayments of $22,500 are made each quarter, beginning in March.
The company's cash balance on December 31, 2016, was $22,000; a minimum balance of $15,000 must be maintained at all times. Assume that any short-term financing needed to maintain the cash balance is paid off in the month following the month of financing if sufficient funds are available. Interest on short-term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus, if the firm expects to need an additional $60,500 in April, these funds will be borrowed at the beginning of April, and the interest of $605 (.12 * 1/12 * $60,500) owed for April will be paid at the beginning of May.
a. Prepare a cash budget for Sharpe covering the first seven months of 2017.
b. Sharpe has $200,000 in notes payable due in July that must be repaid or renegotiated for an extension. Will the firm have ample cash to repay the notes?

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