John Iannotti is preparing his budgets for 1999. He has writ- ten the following on a pad of legal paper:

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Forecast Sales Actual 12/31/98 Balance Sheet Data January $70,000 Cash February 90,000 Accounts Receivable March 80,000 Inventory..... April 60,000 Accounts Payable $ 8,000 20,000 40,000 45,000 Other data are as follows: (a) Sales are on credit with 40 percent collected in the month of sale and 60 percent in the next month. (b) Cost of sales is 60 percent of sales. (c) Other variable costs are 10 percent of sales, paid in the month incurred. (d) Inventories are to be 80 percent of next month's budgeted sales requirements. (e) Purchases are paid in the month after purchase. (f) Fixed expenses are $3,000 per month; all are paid in the month incurred. Required: 1. Prepare a cash budget for February. 2. Comment on which assumptions may be the most tenuous and which may be the most certain.