Problem 15 Eric Smith, the owner and manager of Eric's, has provided the following information about his business for January-March 20X2. The cash balance on January 1, 20X2, is $10,000, and he wants to maintain a minimum balance of $10,000 at the end of each month. The estimated monthly sales are as follows: January 20X2 February 20X2 March 20X2 $110,000 130,000 120,000 The sales are 30 percent cash and 70 percent credit card. The Smith Express Card is converted to cash each day after the sale; however, the brokerage charge is four percent on gross. Other expected income is $2,000 from interest to be received in February. In addition in February, a range with a net book value of $300 is expected to be sold for cash for a $700 gain on the sale. Food and beverages percent of sales. Sales in December 20X1 totaled $130,000. Employees of the month, and the total compensation is 35 percent of sales. paid for the month following the sale, and they average 40 paid the last day are are 578 Chapter 11 Other cash expenses approximate $10,000 per month. In the month of March, $40,000 is expected to be expended on new equipment. Funding for this expenditure comes in part from a long-term loan of $15,000 from the Kansas Bank and Trust Required: Prepare the monthly cash budget for Eric's for January-March 20X2 using the cash receipts and disbursements approach. oM ohouo