Ivanhoe Company expects to have a cash balance of $49,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2017.

1.Collections from customers: January $86,000, February $131,700

2.Payments to suppliers: January $45,600, February $50,300

3.Wages: January $34,300, February $40,300. Wages are paid in the month they are incurred.

4.Administrative expenses: January $24,300, February $33,000. These costs include depreciation of $1,300 per month. All other costs are paid as incurred.

5.Selling expenses: January $18,300, February $21,200. These costs are exclusive of depreciation. They are paid as incurred.

6.Sales of short-term investments in January are expected to realize $13,400 in cash. Ivanhoe has a line of credit at a local bank that enables it to borrow up to $40,300. The company wants to maintain a minimum monthly cash balance of $25,500.

NOTE: Answer with an explanation, please.

Prepare a cash budget for January and February. (Do not leave any answer field blank. Enter O for amounts.) IVANHOE COMPANY Cash Budget For the Months Ending January 30 and February 28, 2022 January Beginning Cash Balance $ 49400 Add: Receipts Collections from Customers 86000 Sale of Short-Term investments 13400 Receipts 148800 Total Available Cash 197400 Less: Disbursements Payments to Suppliers 45600 i Wages 34300 i Administrative Expenses 24300 Selling Expenses 18300 i Total Disbursements 122500 Excess (Deficiency) of Available Cash Over Disbursements 74900 Financing Borrowings Repayments Ending Cash Balance 110 74900 February $ $ 74900 131700 0 206600 131700 50300 i 40300 i 33000 21200 i 144800 13100 12100