Tandy, Inc. is in the business of manufacturing mens and womens leather computer bags. On January 1, 2019 they started their new fiscal year. The following is their trial balance as of December 31, 2018:

Account Dr Cr

Cash $ 43,200

Accounts Receivable $ 9,000

Raw Materials Inventory (1) $ 20,240

Work in Process Inv. (2) $ 0

Finished Goods Inv. (3) $ 8,100

Land $ 225,000

Equipment $ 310,000

Vehicles $ 84,200

Accumulated Depreciation $ 55,100

Long-term Investments $ 78,500

Accounts Payable $ 14,700

Wages Payable $ 8,470

Mortgage Payable (4) $ 214,500

Common Stock (5) $ 25,000

APIC $ 125,000

Retained Earnings $ 335,470

Totals $ 778,240 $ 778,240

Includes 2,860 feet of leather at $4 per foot, 5,000 feet of nylon lining at $1.25 per foot, and 510 golden buckles at $5 per buckle

No bags are currently in process at the beginning of January

Includes 150 completed bags (manufacturing overhead has been applied)

Monthly payments (interest and principle) are $ 2,500

$0.10 par value, 300,000 shares authorized and 250,000 shares outstanding

For the coming year, you have been put in charge of creating the operational budget schedules and the cash budget. Below is information for the first three months of the fiscal year.

Sales Forecasts

For this coming year, you have raised your sales price to $205 per bag. Based on sales contracts you have signed with your major corporate customers, you anticipate the following sales for the first three months of 2019:

January 250 bags

February 225 bags

March 190 bags

According to the terms of the sales contracts, you require each customer to pay 80% of the sales price in the month of sale and 20% in the month following. In December 2018, Tandy had $30,000 in total sales.

The production process

Each bag produced requires 4 feet of leather, 9 feet of nylon, 3 gold buckles, and 3.5 hours of direct labor. Currently, you are paying your assembly workers $17 / hour (all wages are paid in the quarter they are incurred). In order to meet the following months demand, Tandy desires to keep 45% of the next months sales in Finished Goods Inventory. Tandy is forecasting sales in April 2019 of 285 bags. Additionally, they also keep 30% of next months production needs in raw materials inventory. Tandy anticipates production of 255 units in April 2019. Tandy has signed contracts with their suppliers to purchase leather at $4 a foot and buckles at $5 per buckle for the following year. Their policy is to pay for 75% of raw materials at the time of purchase and the remaining 25% in the following month. Tandy incurred $ 8,000 of total materials purchases in December of 2018.

Selling, General, and Administrative Expenses

Tandy anticipates the following expenses for January through March (all expenses are fixed and stated in the aggregate for all three months):

Sales & Delivery $ 12,500

Executives Salaries $ 44,100

Advertising Expenses $ 5,500

Mortgage Payments $ 7,500

Utilities on Admin offices $ 4,500

Required

Please complete the entire operational budget using Microsoft Excel

What is the projected ending cash balance in March?