1 .
Collections from customers : January $ 88,550 , February $ 163,550 .
2 . Payments to suppliers : January $ 57,550 , February $ 92,550 .
3 .
Wages : January $ 30,161 , February $ 40,161 . Wages are paid in the month they are incurred .
4 .
Administrative expenses : January $ 21,161 , February $ 24,161 . These costs include depreciation of $ 1,000 per month . All other costs are paid as incurred .
5 .
Selling expenses : January $ 15,161 , February $ 20,161 . These costs are exclusive of depreciation . They are paid as incurred .
6
Sales of short-term investments in January are expected to realize $ 12,161 in cash . Enright has a line of credit at a local bank that enables it to borrow up to $ 25,000 . The company wants to maintain a minimum monthly cash bala