ToyWorks
Selling and Administrative Budget
First Quarter For the Year Ended December 31, 2019
	Month
	January	February	March	Quarter
Cash balance, beginning	64,165	$ -	$ -
Receipts
Cash sales	$137,500.00	$275,000.00	$137,500.00	$550,000.00
Credit collections	$400,188.00	$177,750.00	$198,750.00	$776,688.00
Total cash available	$601,853.00	$452,750.00	$336,250.00	$1,326,688.00
Less disbursements:
Direct materials	$136,934.65	$99,928.45	$79,538.00	$316,400.00
Direct labour	$84,375.00	$118,125.00	$74,250.00	$276,750.00
Variable manufacturing overheads	$40,625.00	$56,875.00	$35,750.00	$133,250.00
Fixed manufacturing overheads	$52,000.00	$52,000.00	$34,200.00	$198,600.00
Variable selling and administrative expense	$16,250.00	$32,500.00	$16,250.00	$65,000.00
Fixed selling and administrative expense	$44,580.00	$44,580.00	$44,580.00	$133,740.00
Income taxes	$1,500.00	$1,500.00	$1,500.00	$4,500.00
Outstanding 2018 income taxes	$0.00	$0.00	$21,500.00	$21,500.00
Equipment purchases	$121,680.00	$182,520.00	$0.00	$304,200.00
Dividends	$0.00	$0.00	$50,000.00	$50,000.00
Total disbursements	$497,944.65	$588,028.45	$357,568.00	$1,503,940.00
Excess (deficiency) of cash available over disbursements	$ 103,908.35	$ (135,278.45)	$ (21,318.00)	$ (177,252.00)
Financing
Borrowings (at beginning)	$ -	$ -	$ -
Repayment (at end)	$ -	$ -	$ -
Total financing	$ -	$ -	$ -

1. An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.

Complete the financing option for the company