2. (25 pts total) Northuldra Co. has accumulated the following budget information for the first two months of the coming year: Sales Manufacturing Costs Selling & administrative expenses Capital additions January $450,000 $270,000 $41,400 February $520,000 $360,000 $46,400 $250,000 Northuldra expects to sell about 25% of its merchandise for cash. Of the remaining credit sales, 80% are collected in full in the month of the sale, and the remainder in the month following the sale. One-third of the manufacturing costs are paid in the month in which they are incurred, and the other two-thirds in the following month. Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses. Insurance is paid in March, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in January. Of the remainder of the selling and administrative expenses, one-half are to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are paid in February. Current assets as of January 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of January 1 are accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Calculate the monthly cash increase/(decrease) for January and February. Use area below for supporting calculations and use next page to show overall cash increase/decrease. NOTE - you may not necessarily need to use all lines provided