Pharoah Company expects to have a cash balance of $50,600 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2022. 1. 2. 3. 4. Collections from customers: January $78,100, February $160,600. Payments to suppliers: January $44,000, February $82,500. Wages: January $33,000, February $44,000. Wages are paid in the month they are incurred. Administrative expenses: January $23,100, February $26,400. These costs include depreciation of $1,100 per month. All other costs are paid as incurred. Selling expenses: January $16,500, February $22,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $13,200 in cash. Pharoah Company has a line of credit at a local bank that enables it to borrow up to $27,500. The company wants to maintain a minimum monthly cash balance of $22,000 5. 6. PHAROAH COMPANY Cash Budget For the Two Months Ending February 28, 2022 January February 50.600 $ ng cash balance 26,700 Cash receipts Collections from customers 78,300 160,000 Sale of short-term investments 13,200 Total receipts 91,500 160,000 ailable cash 142,100 186,700 Payments to suppliers Payments to suppliers 44,000 82,500 Wages 33,000 i 44,000 i Administrative expenses 21,900.00 25,200.00 Selling expenses 16,500 i 22.000 i Ending cash balance 115,400 173,700 cash balance 26,700 13,000 ng Collections from customers 78,300 160,000 Sale of short-term investments 13,200 Total receipts 91,500 160.000 ailable cash 142,100 186,700 Payments to suppliers Payments to suppliers 44,000 82,500 Wages 33,000 i 44,000 i Administrative expenses 21,900.00 25.200.00 Selling expenses 16,500 i 22.000 i Ending cash balance 115,400 173.700 cash balance 26,700 13,000 ng Borrowings 9.000 Repayments cash balance $ 26,700 22,0000