Question 5 Adam S, managing director of "Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for the months of January and February 2020. To assist in this task, they have provided the following information: Cash balance at the end of December 2019 is $43,500; Each swimsuit is sold for $10 each and actual sale for November and December 2019 and projected sale for January and February 2020 are as follows: November December January February 5,200 units 6,700 units 5,700 units 4,400 units Cash Sales (Quantity) Credit Sales (Quantity) 6,200 units 8,200 units 7,700 units 5,600 units Total Sales 11,400 units 14,900 units 13,400 units 10,000 units Analysis of past records has shown that credit sales are collected over a three-month period. With 60% being collected in the month of the sale, 30% in the next month (second month), and the remainder in the following month (third month); Projected expenditure during January and February 2020 is as follows: o A new piece of equipment costing $89,419 was purchased in December 2019. Upon purchase, the agreed credit terms were 40% on purchased (in December 2019), 40% in January 2020 and the remainder in February 2020; o Manufacturing costs (paid for immediately upon production) are budgeted at $7 per swimsuit (Assume that all the swimsuits sold are manufactured in the same month); o Selling and administrative expenses are budgeted to be $10,700 each month. Required: Prepare a cash budget for Summer Breeze for the months of January and February 2020. Please provide your answer in the table below. Please do not provide for any workings. Please round your answers to whole dollar value. All answers must be in $ value. If an item is given in Units, please convert these to $ values prior to inputting them in the Schedule of Receipt or Cash Budget. Schedule of Receipt January February November 62,000 62000 December 82,000 $ $ $ $ January 77,000 $ February 56,000 $ Total $ $ $ Cash Budget January February Bank balance at beginning of month Anticipated Receipts $ $ Cash Sale $ Credit Sale $ $ $ Total receipts Anticipated Payments Manufacturing Costs $ Selling and Administrative expenses $ $ Capital Expenditure $ Total payments Excess (Deficit) receipts over payments $ Bank balance at End of Month $ $