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(Preparation of a cash budget) Lewis Printing has projected its sales for the first 8 months of 2019 as follows: 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 $175,000, respectively. Lewis purchases raw materials 2 months in advance of its sales. These purchases are equal to 60 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 $12,000 per month and other expenses total $15,000 a month. Beginning in March, quarterly tax prepayments of $22.500 are made The company's cash balance as of December 31, 2018, was $28,000; 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 t 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 i to borrow $50,000 during April, then it would pay $625 (-0.0125 x $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. CO a. Prepare a cash budget for Lewis Printing covering the first 6 months of $22,500. Fill in the Collections for the month of January: (Round to the nearest dollar) Nov Dec Jan Feb Mar Apr May June $220,000 $200,000 $175,000 $100,000 $120,000 $170,000 $280,000 $255,000 Sales Collections: Month of sale (20%) First month (50%) Second month (30%) Total Collections aration of a cash budget) Lewis Printing has projected its sales for the AB & FRIS 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 sala November and December of 2018, Lewis's sales were $200,000 and $175,000, respectively. purcha her del urcha Data table made line o (Click on the following icon in order to copy its contents into a spreadsheet.) Born irm m she January $100,000 April $280,000 July $160,000 120,000 255,000 August 200,000 February March 170,000 220,000 ion, n my's o ont. L timat ww $50 any m re a Coll BS sale (20%) th (50%) May June Print Done 1