2. Aguadilla Pet Shop, Inc. has budgeted for the following cash flow.

October November December

Cash receipts $ 120,000 $ 130,000 $ 134,000 Cash payments

Inventory purchases 100,000 110,000 90,000 Sales and adm. 30,000 35,000 28,000

On October 1 the cash balance is $ 10,000. The company wants to maintain a balance of $ 7,000. To maintain funds, he borrows in amounts of $ 1,000 and makes payments on the last day of each month. The interest rate is 1% per month. The company pays sellers on the last day of the month. The company has an opening balance on its credit line payable of $ 45,000.

Prepare a cash budget.