Yeaman has $10,000 in cash on hand on January 1 and has collected the following budget data:

Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling snd administrative expenses including salaries of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $10,000. Prepare a cash budget for January and February.

Begin by preparing the cash budget for January, then prepare the cash budget for February.

Data Table X Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $1,400 per month) January February $ 530,000 $ 569,000 442,500 502,700 180,624 160,892 135,470 113,348 55 492 53,566 Yeaman Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance $ 10.000 442 500 Cash receipts Cash available 452,500 Cash payments Purchases of direct materials 180.624 Direct labor 135.470 NA Casn avaliable 432,500 Cash payments: Purchases of direct materials 180,624 Direct labor 135,470 54,092 Manufacturing overhead Selling and administrative expenses 70,300 Total cash payments Ending cash balance before fiDnancing Minimum cash balance desired Projected cash excess (deficiency) Financing commissions that are 1% of sales, all paid in the month of sale. The con borrow cash by the end of February? Selling and administrative expenses 70,300 Total cash payments Ending cash balance before fiOnancing Minimum cash balance desired Projected cash excess (deficiency) Financing Borrowing 0 Principal repayments 0 Total effects of Ofinancing 0 Ending cash balance