Matthew Young, Sheffield & Gary Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget.

		January		February		March		Quarter
Collections from sales		476,200			560,860			639,720			1,676,780
Payments for direct materials		80,505			253,125			280,730			614,360
Payments for direct labor		98,640			103,680			116,640			318,960
Payments for manufacturing overheads		78,490			78,980			80,240			237,710
Payments for Selling & administrative expenses		111,400			116,440			123,160			351,000

In addition to the information he received from these managers, Matthew knows the following:

?		Sheffield & Gary plans to have $ 32,400 in its cash account on January 1.
?		Sheffield & Gary plans to purchase and pay cash for a piece of land in January at a cost of $ 87,000.
?		Sheffield & Gary plans to make a cash purchase of equipment in March at a cost of $ 30,000.
?		Sheffield & Gary's income taxes from last quarter totaling $ 26,400 will be paid in January.
?		Sheffield & Gary is required to maintain a minimum cash balance of $ 50,000 in its account at First National Bank.

Sheffield & Gary has negotiated with the First National Bank to provide a $ 175,000 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 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sheffield & Hill's cash budget for the first quarter.

January February March Quarter Beginning cash balance $ 32400 50165 $ $ 32400 Collections from sales 476200 560860 639720 1676780 Total cash available to spend 508600 611025 1709180 Less Disbursements Manufacturing overhead 78490 78980 80240 237710 Land and Equipment purchases 87000 30000 117000 Direct labor 98640 03680 116640 318960 Income taxes 26400 26400 Selling & administrative expenses V 111400 16440 123160 351000 Payments for direct materials 80505 253125 280730 614360 Total cash disbursements 482435 552225 630770 1665430 Cash excess (deficiency) 26165 58 800 43750 Minimum cash balance 50000 50000 50000 5000 Cash excess (needed) 23835 8800 -6250 Financing Borrowings 24000 24000 Repayments Interest Total financing 24000 Ending cash balance 50165 $