Sandhill Company expects to have a cash balance of $61,550 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. 2. 3. 4. Collections from customers: January $86,550, February $161,550. Payments to suppliers: January $55,550, February $90,550. Wages: January $31,490, February $41,490. Wages are paid in the month they are incurred. Administrative expenses: January $22,490, February $25,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. Selling expenses: January $16,490, February $21,490. These costs are exclusive of depreciation. They are paid as incurred. Sales of short-term investments in January are expected to realize $13,490 in cash. Sandhill 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 $35,550. 5. 6. SANDHILL COMPANY Cash Budget For the Two Months Ending February 28, 2017 : January February Beginning cash balance 61.550 $ Add : Collections from customers Payments to suppliers Wages Administrative expenses Selling expenses Less Payments to suppliers Wages Administrative expenses . Selling expenses Financing + Ending cash balance $