Felix Corporation is preparing its master budget for the first quarter of 2021. The following data pertain to Felixs operations: a. Expected sales are $80,000, $110,000, and $120,000 for January, February, and March, respectively. December 2020, sales amounted to $70,000. b. Seventy-five percent of its sales for cash; the remainder are on account. Twenty-two percent of credit sales are collected in the month following the sale and three percent is considered uncollectible. c. Payments for direct materials (DM), direct labor (DL), and manufacturing overhead (MOH) are estimated to be: DM DL MOH January $35,000 $37,000 $ 9,000 February 29,000 35,000 10,000 March 37,000 38,000 12,000 d. Anticipated selling and administrative expenses are expected to be $15,000 in January and will increase by 2% per month. e. In January, the company will purchase an equipment for $25,000. f. The companys January 1 cash balance is $10,000, and a minimum balance of $10,000 is kept at all times. Additional financing is available (and repaid) in $1,000 multiples at 6% annual interest rate. Interest on the repaid principal is paid at the time of repayment based on availability of cash. REQUIRED: Prepare a cash budget using the following format

Jan. Feb. Mar.

Cash balance, beginning

Add cash collections

Total cash available

Less cash payments:

Direct Material purchases

Direct Labor

Manufacturing overhead

Selling and administrative

Tax payment

Equipment

Total cash payments

Ending cash balance before financing

Financing:

Borrowing

Repayments

Interest

Cash balance, ending