(Cash budget) The January 31, 2006, balance sheet of Weymann World fol¬ lows:

Additional information about the company follows:
• Expected sales for February and March are $120,000 and $130,000, re¬ spectively.
• The collection pattern from the month of sale foiward is 50 percent, 48 percent, and 2 percent uncollectible.
• Cost of goods sold is 65 percent of sales.
• Purchases each month are 60 percent of the current month’s sales and 30 percent of the next month’s projected sales. All purchases are paid for in full in the month following purchase.
• Selling and administrative expenses each month are $21,500, of which $4,000 is depreciation.

a. What are budgeted cash collections for February 2006?

b. What will be the Inventory account balance at February 28, 2006?
C. What will be the projected balance in the Retained Earnings account at February 28, 2006?

d. If the company wishes to maintain a minimum cash balance of $8,000, how much will be available for investment or need to be borrowed at the end of February 2006?

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Assets Liabilities and Stockholders' Equity Cash $ 12,000 Accounts Payable $ 70,200 Accounts Receivable (net of Allowance for Uncollectibles of $1,440) 34,560 Inventory 52,400 Common Stock $25,000 Plant Assets (net of Accumulated Retained Earnings) 39,760 64,760 Depreciation of $60,000) 36,000 Total Assets $134,960 Total Liabilities and Stockholders' Equity $134,960