Sophie Turner, from Game of Thrones, is widely known as a Juul addict, so much so that directors will take away her Juul to make her bawl in crying scenes on set. In any case, (again fictional from here on) with Game of Thrones long over, Turner decides to take on a new business opportunity: her own line of electronic cigarettes called Sansavape. Below is the sales budget (in units) for 2022's first quarter: January - 50,000 February - 40,000 March - 80,000 Each Sansavape will be priced at $30.50% of sales are cash; the other 50% are on credit. The cash collection pattern for credit sales is as follows: 40% in the same month 55% in the following month 5% uncollectible Turner also wants to keep a finished goods target ending inventory of 25% of the following month's expected sales. In addition, Turner expects the following from these January budgets: Raw material purchases: $230,000 cash dibursements Direct Labor: $180,000 incurred and paid labor costs Manufacturing Overhead: $620,000 incurred, of which $200,000 is depreciation Selling & Admin: $300,000, of which $100,000 is depreciation On January 1, Sansavape will have $100,000 in cash. Sansavape wants to keep a minimum cash balance of $250,000. Their bank has an open line of credit for $1,000,000 at a 10% annual interest rate. All principal and interest, if any, will be paid at the end of the quarter (March). Sansavape also wants to pay $10,000 in dividends in January to impress shareholders from the very beginning. a. Find cash collections for the month of January. Sansavape is new so there are no sales from prior months (3 points). b. Find production in units for the month of January (3 points) c. What is the cash excess or deficiency in January's cash budget? (3 points)