Problem 14-14 (similar to)) (Preparation of a cash budget) Lewis Printing has projected its sales for the first 8 months of 2019 as follows: Question Help * Lewis collects 20 percent of its sales in the month of the sale, 50 percent in the month following the sale, and the remaining 30 percent 2 months following the sale. During November and December of 2018, Lewis's sales were $200,000 and $165,000, respectively. Lewis purchases raw materials 2 months in advance of its sales. These purchases are equal to 65 percent of its final sales. The supplier is paid 1 month after delivery. Thus, purchases for April sales are made in February and payment is made in March In addition, rent expense is $10,000 per month and other expenses total $15,000 a month. Beginning in March, quarterly tax prepayments of $21,500 are made. The company's cash balance as of December 31, 2018, was $30,000, a minimum balance of $20,000 must be maintained at all times to satisfy the firm's bank line of credit agreement. Lewis has arranged with its bank for short-term credit at an interest rate of 15 percent per annum (1.25 percent per month) to be paid monthly Borrowing to meet estimated monthly cash needs takes place at the end of the month, and interest is not paid until the end of the following month. Consequently, if the firm needed to borrow $50,000 during April, then it would pay $625 (-0.0125 $50,000) in interest during May. Finally. Lewis follows a policy of repaying its outstanding short-term debt in any month in which its cash balance exceeds the minimum desired balance of $20,000 a. Prepare a cash budget for Lewis Printing covering the first 6 months of $21.500 Fill in the Collections for the month of January: (Round to the nearest dollar) Sales Collections Month of sale (20%) First month (50%) Second month (30%) Total Collections Nov Dec Jan Feb Mari Apr May June $200,000 $165,000 $120,000 $140,000 $130,000 $320,000 $275,000 $200,000 This question has not been completed. 14 Parts remaining 24,000 82,500 60,000 $166,500 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) January February March $120,000 April 140,000 May $320,000 275,000 July $220,000 August 200,000 130,000 June 200,000