7-27Blake Henderson and Anna Kraft are preparing a plan to submit to venture cap

7-27Blake Henderson and Anna Kraft are preparing a plan to submit to venture capitalist to fund their business Music Masters. The company plans to spend $380000 on equipment in the first quarter of 2008. Salaries and other operating expenses (paid as incurred) will be $35000 per month beginning in January 2008 and will continue at that level thereafter. The company will receive its first revenues in January 2009 with cash collections averaging $30000 per month for all of 2009. In January 2010 cash collections are expected to increase to $100000 per month and continue at that level thereafter. Assume that the company needs enough funding to cover all its cash needs until cash receipts start exceeding cash disbursements. How much venture capital funding should Blake and Anna seek?