Julia Beecher, chief financial officer of Keller Wireless, is responsible for the company's budgeting process. Beecher's staff is preparing the Keller Wireless cash budget for 2017. A key input to the budgeting process is last year's statement of cash flows, which follows (amounts in thousands):

Requirements
1. Prepare the Keller Wireless cash budget for 2017. Date the budget simply "2017," and denote the beginning and ending cash balances as "beginning" and "ending." Assume the company expects 2017 to be the same as 2016, but with the following changes:
a. In 2017, the company expects a 14% increase in collections from customers and a 20% increase in cash payments for inventory.
b. There will be no sales of investments in 2017.
c. Keller Wireless plans to issue no stock in 2017.
d. Keller Wireless plans to end the year with a cash balance of $3,500 (thousand).

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A1 Keller Wireless Statement of Cash Flows For the Year Ended December 31, 2016 In thousands) Cash Flows from Operating Activities Collections from customers Cash payments for inventory 9 Cash Flows from Investing Activities 66,000 600 5,000) Interest received 6 Cash payments for operating expenses Net cash provided by operating activities 8,000 10Purchases of equipment 11 Purchases of investments 12 Sales of investments 4,600) 200) 900 3,900 Net cash used for investing activities 4 Cash Flows from Financing Activities 15 Payment of long-term debt 16ssuance of stock 17 Payment of cash dividends 400) 1,400 300 700 Net cash provided by financing activities 19 Cash 20 Increase (decrease) in Cash 21Cash, beginning of year 22 Cash, end of year 4,800 3,300 8,100 23