Score: Choose Exercise (1 only) ALT-CASH-BUDGET = Perez Company has a beginning balance of cash on January 1 of $82,000. Cash collections for the first three months of 2019 are expected to be $70,000, $112,000 and $145,500 respectively. Payments for direct materials for the three month period will be $40,000, $70,000, and $60,000. Direct labor costs for January, February and March are likely to be $45,000, $50,000 and $60,000 respectively. Factory overhead costs for the three month period are estimated to be $24,000, $30,000, and $25,000. Note: The factory overhead costs include factory depreciation of $2,500 each month. Selling and Administrative costs for the three months are $15,000 each month. The company plans to sell marketable securities in February in the amount of $44,000. Perez Company has a line of credit which allows the company to borrow up to $25,000 of cash, in $1,000 increments. The company plans to maintain a minimum cash balance of $20,000 each month. CASH BUDGET Beginning Cash Balance Cash Receipts: Collections from Customers Sale of Securities Total Cash Available Cash Payments: Direct Materials Direct Labor Factory Overhead Selling and Admin. Expenses Total Payments Excess or Deficiency* Financing Borrowing Repayments Ending Cash Balance JANUARY FEBRUARY MARCH *If there is a deficiency, or excess is less than $20,000, borrow money to bring the balance to $20,000