Consider the following information about Elmwood Manufacturing Company:

	Estimated			Estimated Factory			Estimated Selling and
Month	Sales			Overhead			Administrative Expenses
December Year 1		$2,900,000			$620,000			$1,215,000
January Year 2		1,200,000			630,000			1,240,000
February Year 2		11,500,000			670,000			1,250,000
March Year 2		4,200,000			630,000			1,205,000
April Year 2		1,650,000			670,000			1,335,000

The company has found that approximately 35 percent of sales are collected during the month the sale is made and the remaining 65 percent are collected during the month following the sale. Material purchases are 40 percent of next months estimated sales, and payments lag these purchases by one month. Labor costs are 30 percent of next months sales and are paid during the month incurred. Factory overhead and selling and administrative expenses are paid during the month incurred. In addition, a payment for new equipment of $1.1 million is due in February. Also, a tax payment of $1.3 million and a dividend payment of $620,000 are due in March.

The companys projected cash balance at the beginning of January is $1.5 million. Furthermore, Elmwood desires to maintain a $750,000 cash balance at the end of each month. Prepare a cash budget for Elmwood Manufacturing Company for the first three months of Year 2. Enter your answers as positive values, but use minus sign to indicate the lack of available cash. Enter zero if necessary. Do not leave any cells blank. Round your answers to the nearest dollar.

Cash Budget
First Quarter, Year 2
	December		January		February		March		April
Sales	$		$		$		$		$
Projected cash balance, beginning of month			$		$		$
Receipts:
Collection of A/R
Total cash available			$		$		$
Disbursements
Payments of A/P			$		$		$
Labor expenses
Factory overhead
Selling and adm. expenses
Taxes
Dividends
Purchase of new equipment
Total disbursements			$		$		$
Excess of available cash
over disbursements
Incremental cash loans needed
to maintain a balance of
$750,000			$		$		$
Loan repayment			$		$		$
Projected cash balance,
end of month			$		$		$