Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. n. mer Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. p. Trolley desires to maintain a minimum cash balance of $55,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 10% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. O. han ce n t Print Done Read the requirements. Cash payments: Capital expenditures 45,000 Purchases of direct materials 17,617 9,844 Direct labor 6,552 5,796 Manufacturing overhead 9,137 8,381 Selling and administrative expenses 16,370 16,640 Income taxes 3,500 3,500 Interest expense Total cash payments 98,176 Ending cash balance beforefi nancing 54,904 (55,000) Minimum cash balance desired (55,000) Projected cash excess (de ciency) (96) Financing: Borrowing 1,000 Principal repayments Total effects of 1,000 financing 55,904 Ending cash balance o Enter any number in the edit fielde and thee a