Cash is King!Good cash management is an essential job of the financial manager! You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budget indicates that your MONTHLY NET CASH for the year will be the following:JAN $5,000FEB -$30,000MAR $20,000APRIL -$35,000MAY $25,000JUNE -$10,000JULY $25,000AUG $25,000SEPT -$30,000OCT $15,000NOV $15,000DEC $25,000You begin the year with a cash balance of $50,000, and the minimum cash balance desired must be $50,000 every month. Prepare a cash flow summary and external financing summary as noted in the Excel spreadsheet assigned to this submission.
- Do you believe that the company needs outside financing?
- What is the minimum line of credit to request from a lender?
- Do you think you are a good candidate for the line of credit? Why
