Question 1 Ivanhoe Company expects to have a cash balance of $63,000 on January 1, 2017These are the relevant monthly budget data for the first t o months of 2017 1. Collections from customers: January $88,000, February $163,000. 2. Payments to suppliers: January $57,000, February $92,000. 3. Wages: January $31,560, February $41,560. Wages are paid in the month they are incurred 4. Administrative expenses: January $22,560, February $25,560. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. S. Selling expenses: January $16,560, February $21,560. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $13,560 in cash. Ivanhoe Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $37,000. Prepare a cash budget for January and February IVANHOE COMPANY Cash Budget January February