2. The preparation of a cash budget Thompson 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 $2,875 $3,123 $2,250 Estimated cash payment for manufacturing costs 1,118,575 1,199,678 1,794,455 Interest payments on a line of credit 14,950 12,555 17,485 Income tax payments 174,939 Purchase of factory equipment for cash 1,384,950 1,447,010 955,408 Selling and administrative expense cash payments 230,390 223,325 243,100 Minimum cash balance 287,500 287,500 287,500 Cash balance at beginning of month 300,885 The company expects to collect cash on its accounts receivable during the three months, as follows: . January: $3,139,500 February: $3,118,650 March: $3,121,400 Complete the following cash budget for Thompson Inc. by entering the appropriate values in the spaces provided. Use a minus sign to indicate the negative amount. February March $3,118,650 $ 2,250 $3,123,650 $ $ Thompson Brothers Inc. Cash Budget For the Quarter Ending March 31, Year 2 January Estimated cash receipts from Collections on accounts $3,139,500 receivable Interest revenue Total cash receipts $3,142,375 Estimated cash payments for Manufacturing costs $1,118,575 Selling and administrative 230,390 expenses Purchase of factory equipment Interest expense 14,950 Income taxes Total cash payments Cash increase (decrease) $ Cash balance at beginning of 300,885 month Cash balance at end of month $ Minimum cash balance Excess (deficiency) $ $ 243,100 955,408 1,447,010 12,555 174,939 $3,185,387 $ $ $239,205 $ $ $ 287,500 $584,363 $