Please find Cash Budget knowing the information below (included all necessarily budgets with further information)

Further information

The cash balance on December 31, 2014, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2015.

Dividends are paid each month @ $2.50 per share for 5,000 shares.

The company has an open line of credit with national Bank. The terms of the agreement require borrowing to be in the increments of $1,000, and the interest rate is 8%. Irrigation borrows on the first day of the month and repays on the last day of the month if possible.

A $500,000 equipment purchase is planned for February 2015.

All sales are on credit. 85% of the accounts receivable are collected in the month of sale and 15% of the accounts receivable are collected in the month after sale. Accounts receivable on December 31, 2014, totaled $183,780.

Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid after the month of purchase. Accounts payable on December 31, 2014, totaled $120,595.

Months January February Quarter Sales 113,000 112,500 341,500 March 116,000 $12 $1,392,000 Price $12 $12 $1,356,000 $12 $4,098,000 Revenue $1,350,000 Months Quarter Expected unit sales Add: Desired ending inventory Total required units Less: Beginning inventory Required production - units January 113,000 10,210 123,210 11,250 111,960 February 112,500 11,300 123,800 10,210 113,590 March 116,000 11,250 127,250 11,300 115,950 341,500 11,250 352,750 11,250 341,500 January February March Quarter Months Units produced Pounds per unit Total pounds of direct material Add: Desired ending inventory of direct material Required pounds of direct material Less: Beginning inventory of direct material Direct material purchased (pounds) Cost per pound Total cost of direct material purchased 111,960 113,590 115,950 341,500 2 - 2 2 2 223,920 227,180 231,900 683,000 11,335 11,196 11,359 11,359 235,255 238,376 243,259 694,359 11,295 11,335 11,196 11,295 223,960 227,041 232,063 683,064 $1.01 $1.01 $1.01 $1.01 $226,199.60 $229,311.41 $234,383.63 $689,894.64 Months January February March Quarter Units to be produced 111,960 113,590 115,950 341,500 Direct labor per unit (hour) 0.2 0.2 0.2 0.2 Total required direct labor hours 22,392 22,718 23,190 68,300 $8 $8 Direct labor cost per hour Total direct labor cost $8 $179,136 $8 $546,400 $181,744 $185.520 Manufacturing overhead for the quarter :- Particulars February March Quarter January 6,718 6,815 6,957 20,490 11,196 11,359 11,595 34,150 10,076 10,223 10,436 30,735 Indirect material @ 0.30 per labor hour Indirect labor @ 0.50 per labor hour Utilities @ 0.45 per labor hour Maintenance @ 0.25 per labor hour Factory supervisors salary Factory depreciation Property taxes 5,598 5,680 5,798 17,075 42,000 1,26,000 42,000 16,800 2,675 42,000 16,800 2,675 16,800 50,400 2,675 8,025 3,600 Insurance 1,200 1,200 1,200 Repairs 1,300 1,300 1,300 3,900 Total manufacturing overhead 97,563 98,052 98,760 2,94,375 Selling and Administrative expenses budget for the quarter :- Particulars January Salaries 72,000 February March Quarter 72,000 72,000 2,16,000 Advertising 15,000 15,000 15,000 45,000 1,400 1,400 1,400 4,200 2,500 2,500 Insurance Office depreciation Other fixed costs Commission @0.25 per unit of sales Total Selling and Administrative expenses 2,500 3,000 7,500 9,000 3,000 3,000 28,250 28,125 29,000 85,375 1,22,150 1,22,025 1,22,900 3,67,075