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A company prepares its master budget for the year 2021 on a monthly basis. The budget officer has gathered the following budget data: 1. Budgeted sales January $ 600,000 Fabruary $ 680,000 March $ 900,000 2. Sales are made 30% for cash and 70% on credit. Credit sales are collected as follows: The month of sale 60% A month after sales 38% Uncollectible 2% (The company recognizes bad debt expenses in the month sales are made.) 3. Cost of goods sold for each quarter is 40% of sales 4. Variable selling and administrative expenses (100% cash expenditure) are 30% of sales. 5. Fixed selling and administrative (S&A) expenses for each month are Advertising $ 54,000 Executive salaries $ 20,000 Insurance $ 26,000 Depreciation $ 28,000 Total med S&A expenses 5128,000 6. Inventory purchases paid for in February will be $95.000 7. The company expects to borrow $40,000 on February , 2021. No principal will be repaid during the year Interest at an annual rate Company recognizes bad debt expenses in the month sales are made.) 3. Cost of goods sold for each quarter is 40% of sales, 4. Variable selling and administrative expenses (100% cash expenditure) are 30% of sales. 5. Fixed selling and administrative (S&A) expenses for each month are: Advertising $54,000 Executive salaries $ 20,000 Insurance $ 26,000 Depreciation $ 28,000 Total fixed S&A expenses $ 128,000 6. Inventory purchases paid for in February will be $95,000. 7. The company expects to borrow $40,000 on February 1, 2021. No principal will be repaid during the year, Interest at an annual rate of 12% is due monthly 8. The company will pay dividends of $10,000 in February that was declared in December 2020, [Q] How much is the budgeted net income for February (Ignore taxes. (ANS) $ (@lif the beginning cash balance in February is expected to be $35,000, what will be the budgeted ending balance of cash in February? (ANS] $

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