Prepare a cash budget for March and April based on the following information:

January February March April Sales $50,000 $50,000 $40,000 $60,000 LO6 Wages 3000 4000 Rent 1000 1000 Other 400 600 Taxes 8000 Experience shows that 20% of customers pay in the month of sale, 70% pay 1 month later, and the rest of paying customers pay 2 months after sale. Three percent of customers never pay. Inventory is purchased 1 month prior to sale, and cost of goods sold equals 70% of sales. Accounts payable are paid 30 days after purchase.

Any financing is done through a 12% LOC. The company has $5000 cash on hand on March 1 and would like to retain a cash balance of $5000.