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USE THE JOIowing information to answer the next two questions: The owner of Madison Pratt Designs is planning to request a line of credit from

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USE THE JOIowing information to answer the next two questions: The owner of Madison Pratt Designs is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for the following months: November $30,000 December $24,000 January $16,000 February $21,000 Collection of sales is expected to be as follows: 20% within the month of sale: 70% the month following the sale; and 10% the second month following the sale Total labor and raw materials costs are expected to be incurred as follows: November $12,000 December 9,500 January $10,500 February $13,000 These labor and raw materials costs (above) are paid for the month after they are incurred. Salaries cost the firm $4,000 per month; lease payments are $1000 per month; depreciation charges are expected to be $600 per month; an income tax payment of S900 will be made in January; and a payment of $1500 for advertising will be made in February, Cash on hand on January Ist will amount to $3,000, and a target cash balance of $10,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January A. $19,000 B. $22,400 c. none of the other choices is correct D. $23,600 Save Click Save and Submit to save and submit. Click Save All Answers to save all answers These mbor and raw materials COSS BOVE, are pad for the month at they are incurred. Sans Cost the firm 100 per month lease payments are $1000 per month; depreciation charges are expected to be $600 per month; an income tax payment of S900 will be made in January; and a payment of $1500 for advertising will be made in February. Cash on hand on January Ist will amount to $3,000, and a target cash balance of $10,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January OA $19,000 OB. $22,400 OC none of the other choices is correct OD. $23,600 OE. $23,000 QUESTION 23 How much surplus (or loan) is expected at the end of February? A. $1,900 B.$1,400 C. $200 D.$3,100 E none of the other choices is correct

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