Waterways Corporation manufactures and sells sprinkler heads for irrigation systems. Waterways is preparing its budget for the coming year, 2022.The first step is to plan for the first quarter of that coming year. Waterways gathered the following information from managers.

Sales

Unit sales for November 2021 112,500

Unit sales for December 2021 102,100

Expected unit sales for January 2022 113,000

Expected unit sales for February 2022 112,500

Expected unit sales for March 2022 116,000

Expected unit sales for April 2022 125,000

Expected unit sales for May 2022 137,500

Unit selling price $ 8.00

Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts Receivable on December 31, 2021, totaled $183,780.Waterways uses the FIFO inventory method to record COGS and ending inventory

Direct Materials

It takes two pounds of raw materials (a combination of metal, plastic, and rubber) to produce one sprinkler head. The cost of these materials together is $0.75 per pound.Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Payment for 50% of the materials is made in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $120,595.

Direct Labor

Labor requires 12 minutes per unit for completion and is paid at a rate of $8 per hour.

Manufacturing Overhead

Indirect materials $0.30 per labor hour

Indirect labor $0.50 per labor hour

Utilities $0.45 per labor hour

Maintenance $0.25 per labor hour

Salaries $42,000 per month

Depreciation $16,800 per month - starting in February

Property taxes $ 2,675 per month

Insurance $ 1,200 per month

Maintenance $ 1,300 per month

Selling and Administrative Costs

Variable selling and administrative costs $1.60 per unit

Advertising $15,000 per month

Insurance $ 1,400 per month

Salaries $72,000 per month

Depreciation $ 2,500 per month - starting in February

Other fixed costs $ 3,000 per month

Other Information

The cash balance on December 31, 2021, totaled $100,500, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.50 per share for 5,000 shares outstanding. The company has an open line of credit with Smithington Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 6% interest. Waterways borrows on the last day of the month (if cash is needed) and repays on the last day of the month (if there is excess cash). A $500,000 equipment purchase is planned for February. The income tax rate is 20% and income taxes are paid in the quarter following the assessment. Income taxes payable at December 31, 2021, were $35,000.

I need the cash Budget that adds up to total borrowing=$664,000