View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct Sheffield Company expects to have a cash balance of $45.000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1 2 3. 4. Collections from customers: January 599,000; February $160,000 Payments to suppliers: January $59.00: February $82.000 Direct labour January 531,000: February $46,000. Wages are paid in the month they are incurred. Manufacturing over head: January $27,000February $30,000. These costs include depreciation of 51.000 per month. All other overhead costs are paid as incurred Selling and administrative expenses: January $13,000: February $19.000. These costs are exclusive of depreciation. They are paid as incurred Sales of marketable securities in January are expected to realize $10,000 in cash s. 6 Sheffield Company has a line of credit at a local bank. It can borrow up to $25.000. The company wants to keep a minimum monthly cash balance of $25,000. S210 Sheffield Company has a line of credit at a local bank. It can borrow up to $25,000. The company wants to keep a minimum monthly cash balance of $25,000 Prepare a cash budget for January and February SHEFFIELD COMPANY Cash Budget For the Two Months Ending February 28, 2022 Month Jan Feb Beginning cash balance $ 45000 $ 28000 Add : Cash recipes Collection from customers 99000 180000 10000 Sale of marketable-securities 160000 Total receipt 109000 Sale of marketable securities 10000 Totalrecipes 107000 10000 Total available cash 154000 185000 Less Beginning cash balance Borrowing 59000 11.2000 6 Direct labour 31000 1 MO Manufacturing overhead 26000 20001 Selling and administrative expenses 13000 19000 Disbursements 130000 177000 Total available cash 23000 7000 Financing 521 Borrowing 5xxx 20 Direct labour 31000 UDO Manufacturing overhead 20000 25000 Selling and administrative expenses 13000 19000 1 Disbursements 130000 177000 Total available cash 23000 7000 Financing Borrowing 13000 Repayment 0 Coop Endine cash balance 0 13000 29000 20000 Total available cash