Exercise 5-28 John Wills, Sunland & Hill Fabricators budget director, has received budget information from several managers and is preparing the companys cash budget. January February March Quarter Collections from sales 319,515 580,125 618,300 1,517,940 Payments for direct materials 47,890 71,400 84,440 203,730 Payments for direct labor 132,090 227,290 201,110 560,490 Payments for manufacturing overheads 102,798 106,130 105,214 314,142 Payments for Selling & administrative expenses 61,285 78,240 74,670 214,195 In addition to the information he received from these managers, John knows the following: Bates & Hill plans to have $71,400 in its cash account on January 1. Bates & Hill plans to declare and pay dividends totaling $58,310 in January. Bates & Hill plans to purchase and pay cash for a piece of land in February at a cost of $85,680. Bates & Hill plans to make a cash purchase of equipment in March at a cost of $71,400. Bates & Hills income taxes from last quarter totaling $89,560 will be paid in January. Bates & Hill is required to maintain a minimum cash balance of $35,700 in its account at First National Bank. Sunland & Hill has negotiated with the First National Bank to provide a $208,000 line of credit that can be borrowed against in $1,000 increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 14%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sunland & Hills cash budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)