Yancey

has

$14,000

in cash on hand on

January

1 and has collected the following budget data:

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(Click on the icon to view the budget data.)Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume

Yancey

has cash payments for selling and administrative expenses including salaries of

$75,000

per month plus commissions that are

2%

of sales, all paid in the month of sale. The company requires a minimum cash balance of

$1,000.

Prepare a cash budget for

January

and

February.

Round to the nearest dollar. Will

Yancey

need to borrow cash by the end of

February?

Begin by preparing the cash budget for

January,

then prepare the cash budget for

February.

(Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.)

Yancey Company

Cash Budget

Two Months Ended January 31 and February 28

		January
Beginning cash balance		$14,000
Cash receipts		442,300
Cash available		456,300
Cash payments:
Purchases of direct materials		179,848
Direct labor		134,750
Manufacturing overhead
Selling and administrative expenses
Total cash payments
Ending cash balance before financing
Minimum cash balance desired		(1,000)
Projected cash excess (deficiency)
Financing:
Borrowing
Principal repayments
Total effects of financing
Ending cash balance

January

February

Sales

$527,000

$567,000

Cash receipts from customers

442,300

502,900

Cash payments for direct materials purchases

179,848

160,940

Direct labor costs

134,750

113,238

Manufacturing overhead costs (includes depreciation of $1,300 per month)

55,714

53,452