2. (11 points) Olde Corporation is preparing a cash budget for the first two months of the coming year. The following data have been forecasted: January Februarye # Salese $ 750,000 $ 800,000 Purchases 450,000 480,000 Operating expenses: Payrolle 146,800 167,400 Advertising 52,700 62,800 Rent 8,750 8,750 Depreciation 23,750 23,750 End-of-January balances: Cash 120,000 Bank loan 480,000 T. 1. 1. Additional data: Sales are 40% cash and 60% credit. The term of credit sales is 2/10, n/30. The collection pattern for credit sales is 80% in the month following the month of sale (of which 75% are collected within 10 days), and 20% in the month thereafter. Total sales in December of the prior year were $1,000,000. Purchases are all on credit, with 40% paid in the month of purchase and the balance the following month. Operating expenses are paid in the month incurred. The firm desires to maintain a minimum cash balance of $150,000 at the end of each month. + Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made (at the end of the month) whenever the cash balance exceeds $150,000. Required: Prepare the cash budget, in the form of a statement of cash flow, for February. What is the amount of the loan balance at the end of the month (after loan repayments, if any)