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What will the surplus (or loan) be at the end of February? O $19,550 O none of the above O $20,350 O $21.150 O $22,050 Use the following information to answer the next two questions: The owner of Greenwell Tire Sales needs to request a line of credit from his bank. He has calculated the following sales forecasts for the following months: November $25.000 December $35.000 January $20,000 February $23,000 Collection of sales is expected to be as follows: 15% within the month of sale: 60% the month following the sale; and 25% the second month following the sale. Total labor and raw materials costs are expected to be incurred as follows: November $17,500 December $10,000 January $11,500 February These labor and raw material $12,500 These labor and raw materials costs (above) are paid for the month after they are incurred. Salaries cost the firm $3.300 per month; lease payments are $700 per month; depreciation charges are expected to be $400 per month: an income tax payment of $800 will be made in January; and a payment of $1000 for advertising will be made in February, Cash on hand on January Ist will amount to $3,000, and a target cash balance of $5,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January. What will the surplus (or loan) be at the end of February? O $19,550 O none of the above O $20,350 $21,150 O $22.050 What will the surplus (or loan) be at the end of February? O $19,550 O none of the above O $20,350 O $21.150 O $22,050 Use the following information to answer the next two questions: The owner of Greenwell Tire Sales needs to request a line of credit from his bank. He has calculated the following sales forecasts for the following months: November $25.000 December $35.000 January $20,000 February $23,000 Collection of sales is expected to be as follows: 15% within the month of sale: 60% the month following the sale; and 25% the second month following the sale. Total labor and raw materials costs are expected to be incurred as follows: November $17,500 December $10,000 January $11,500 February These labor and raw material $12,500 These labor and raw materials costs (above) are paid for the month after they are incurred. Salaries cost the firm $3.300 per month; lease payments are $700 per month; depreciation charges are expected to be $400 per month: an income tax payment of $800 will be made in January; and a payment of $1000 for advertising will be made in February, Cash on hand on January Ist will amount to $3,000, and a target cash balance of $5,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January. What will the surplus (or loan) be at the end of February? O $19,550 O none of the above O $20,350 $21,150 O $22.050

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