Yates has $13,500 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 Yates has cash payments for selling and administrative expenses including salaries of $45,000 per month plus commissions that are 2% of sales, all paid in the month of sale. The company requires a minimum cash balance of $10,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yates need to borrow cash by the end of February?
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