Prepare a cash budget for January and February

Ivanhoe Company expects to have a cash balance of $45,200 on January 1, 2022. Ivanhoe has budgeted the following for the first two months of the year 2022: 1. 2. 3. 4. 5. 6. Collections from customers: January $90,900; February $108,900. Payments to suppliers: January $39,600; February $50,500. Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,100; February $22, 100. These costs do not include depreciation and they are paid as incurred. Sales of investments in January are expected to realize $9,900 in cash. Ivanhoe Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed. Prepare a cash budget for January and February. IVANHOE COMPANY Cash Budget For 2022 January February