Management has established a line of credit with a local bank that requires all borrowing to commence at the beginning o

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Management has established a line of credit with a local bank
that requires all borrowing to commence at the beginning of the
month and all repayments to be at the end of the month plus three
(3) percent interest on the portion repaid. Any borrowing or
repayment must be made in multiples of $ 10,000. [The minimum cash
balance needs to be $ 10,000.]
Company
Cash Receipts and Disbursements
April, May, and June
April
May
June
Cash beginning balance
$ 10,000
$________
$________
Total Cash Collections
225,000
289,600
328,300
Total Cash Available
$ 235,000
$ ______
$ _______
Cash Payments for
Direct Materials
$ 125,000
$ 181,000
$ 186,000
Direct Labor
34,000
63,000
66,000
Overhead
28,000
24,000
25,000
Selling and Administrative Expenses
16,000
17,000
19,000
Insurance
50,000
Dividends
30,000
Minimum Cash Balance
10,000
10,000
10,000
Total Cash Requirement
$ 263,000
$ 295,000
$ 336,000
Excess (Deficit)
($28,000)