Crane Company expects to have a cash balance of $27,600 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. 2. 3. 4. Collections from customers: January $42,600, February $87,600. Payments to suppliers: January $24,000, February $45,000. Wages: January $18,000, February $24,000. Wages are paid in the month they are incurred. Administrative expenses: January $12,600, February $14,400. These costs include depreciation of $600 per month. All other costs are paid as incurred. Selling expenses: January $9,000, February $12,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $7,200 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $15,000. The company wants to maintain a minimum monthly cash balance of $12,000. 5. 6. Prepare a cash budget for January and February. (List items that increase cash balance first.) CRANE COMPANY Cash Budget For the Two Months Ending February 28, 2022 January February Beginning cash balance $ 27600 $ 144 Add : Cash receipts Collections from customers A 42600 87 Sale of short-term investments 7200 49800 87 77400 1020 Less : 24000 45C 18000 240 12000 13 9000 120 63000 94 14400 72 Add : 0 4 Less : 0 Ending cash balance $ 14400 $ 12C