Mass Company has $ 12500 in cash on hand on January 1 and has collected the following budget data: Assume Mass has cash payments for selling and administrative expenses including salaries of $ 60000 plus commissions of 3% of sales, all paid in the month of sale. The company requires a minimum cash balance of $ 10 000. Prepare a cash budget for January and February. Will Mass need to borrow cash by the end of February?

	January	Febuary
Sales	$1,330,000	$720,000
Cash Receipts from customers	851,740	872,000
Cash payments for merchandise inventory	561,200	532,310

Mass Company Cash Budget Two Months Ended January 31 and Febuary 28
	January
Begginning cash balance
Cash receipts
Cash available
cash payments:
Purchases of merchandise inventory
Selling and administrative inventory
Total Cash Payments
Ending cash balance before financing
Minimum cash balance desired
projected cash excess (deficiency)
Financing:
Borrowing
Principal repayments
total effects of financing
ending cash balance