Pharoah Company expects to have a cash balance of $58,600 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $83,600, February $158,600. 2. Payments to suppliers: January $52,600, February $87,600. 3. Wages: January $30,830, February $40,830. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,830, February $24,830. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,830, February $20,830. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,830 in cash. Pharoah Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $32,600. PHAROAH COMPANY Cash Budget For the Two Months Ending February 28, 2017 January February Beginning cash balance 58600 $ Add Cash receipts Collections from customers 83600 158600 Sale of short-term investments 12830 Total receipts 96430 158600 Total available cash 155030 Less Less : Cash disbursements Payments to suppliers 52600 87600 M Wages C 3 0830 : 30830 i 40830 40830 : Administrative expenses Selling expenses Selling expenses C 1 5830 C 15830 2 08301 20830 Total disbursements Excess (deficiency) of available cash over disbursements Financing M: Borrowings Repayments Ending cash balance