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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February $528,000 560,000 502,800 160,464 113,792 January Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $2,100 per month) 442,400 180,598 135,040 55,428 53,436