General and administravitve salaries are approximately $27,000 a month. Lease paymentsunder long-term leases are $9,000 a month. Depreciation charges are $36,000 a month. Miscellaneous expenses are $2700 a m onth. Income tax payments of $63,000 are due in September an December. A progress payment of $180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $132,000 and a miimum cash balance of $90,000 should be maintained throughout the cash budget period.
B. Prepare a monthly estimates of the required financing or excess funds- that is the amount of money Bowers will need to borrow or will have available to invest.