[Short-Term Financial Planning] The Itsar Products Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. Itsar Products has beginning cash on hand of $10,000 and wants to maintain this minimum cash level throughout the next year.

Month                            Cash Receipts   Cash Disbursements

January                              $100,000             $100,000

February                            $90,000                 $110,000

March                                $80,000                 $110,000

April                                  $100,000                 $150,000

May                                 $120,000                  $180,000

June                               $160,000                   $180,000

July                                $200,000                  $180,000

August                           $250,000                    $180,000

September                     $250,000                    $150,000

October                         $200,000                     $110,000

November                      $140,000                    $100,000

December                      $100,000                   $100,000

A. If Itsar Products has a cash need, indicate the month when the need will begin and determine the month and amount when the maximum need will occur.

B. Determine whether the cash need (if any) can be repaid within the next year.

C. Rework the Problem assuming minimum cash on hand requirements are $10,000 a month through May, increase to $15,000 in June and July, increase further to $20,000 in August and September, and return to the $10,000 per month level beginning in October.