12. The preparation of a cash budget Smith Brothers Inc. is a distributor of men's, women's, and children's shoes. The company imports shoes primarily from Europe and sells them to specialty clothing and shoe stores around the country. The company's chief accountant has gathered the following information to aid in the preparation of a cash budget for the first quarter of year 2. January February March Interest revenue from investments $2,525 $2,731 $1,970 Estimated cash payment for manufacturing costs 982,705 1,058,978 1,514,091 Interest payments on a line of credit 13,130 10,945 15,357 153,617 Income tax payments Purchase of factory equipment for cash Selling and administrative expense cash payments 1,215,130 1,657,010 717,408 202,390 195,955 208,100 Minimum cash balance 252,500 252,500 252,500 Cash balance at beginning of month 263,575 The company expects to collect cash on its accounts receivable during the three months, as follows: January: $2,762,900 February: $2,740,790 March: $2,743,400 Complete the following cash budget for Smith Inc. by entering the appropriate values in the spaces provided. Use a minus sign to indicate the negative amount Smith Brothers Inc. Cash Budget For the Quarter Ending March 31, Year 2 January February March Estimated cash receipts from Collections on accounts receivable $2,762,900 $2,740,790 $ Interest revenue 1,970 Total cash receipts $2,765,425 S $ $2,745,370 Estimated cash payments for Manufacturing costs $982,705 $ $ Selling and administrative expenses 202,390 208,100 Purchase of factory equipment 1,657,010 717,408 Interest expense 13,130 10,945 Income taxes 153,617 Total cash payments $ $ $2,608,573 Cash increase (decrease) $-179,367 $ 263,575 Cash balance at beginning of month Cash balance at end of month Minimum cash balance $ $ $ 252,500 Excess (deficiency) $ $320,575