Yem has $10,500 in cash on hand on January 1 and has collected the following budget data:

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Assume direct labor costs and manufacturing overhead costs are paid in teh month incurred. Additionally, assume Yem has cash payments for selling and administrative expenses including salaries of $40,000 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. Found to the nearest dollar. Will Yem 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 boxes. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.)

Yem Company

Cash Budget

Two Months Ended January 31 and February 28

		January
Beginning cash balance		$10,500
Cash receipts
Cash available
Cash payments:
Purchases of direct materials		179,848
Direct labor		134,980
Manufacturing overhead
Selling and administrative expenses
Total cash payments
Ending cash balance before financing
Minimum cash balance desired
Projected cash excess (deficiency)
Financing:
Borrowing
Principal repayments
Total effects of financing
Ending cash balance

January February Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $1,400 per month) 531,000$ 568,000 442,300 179,848 134,980 502,600 160,610 113,348 55,366 53,922