XYZ Company prepares monthly cash budgets. Using the information below prepare a cash budget for February.

January	February
Sales	350,000	400,000
Direct Materials Purchases	95,000	110,000
Direct Labour	80,000	95,000
Manufacturing Overhead	60,000	75,000
Selling and Administrative expenses	75,000	85,000

• All sales are on account and are collected 60% in the month of sale and 40% in the following month.
• 40 % of the direct material purchases are paid in cash in the month of purchase and the remainder in the month following purchase
• All other items are paid for in the month they are incurred.
• Other receipts - $5,000 from the sale of investments
• Other payments - $10,000 for new machinery.
• The cash balance at 1^st February is expected to be $60,000