3. Adam S, managing director of "Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for the months of January and February 2020. To assist in this task, they have provided the following information: Cash balance at the end of December 2019 is $48,900; Each swimsuit is sold for $10 each and actual sale for November and December 2019 and projected sale for January and February 2020 are as follows: November December January February 5,200 Cash Sales (Quantity) units 6,900 units 5,600 units 4,500 units Credit Sales (Quantity) 6,200 units 8,400 units 7,600 units 5,700 units Total Sales 11,400 units 15,300 units 13,200 units 10,200 units Analysis of past records has shown that credit sales are collected over a three-month period. With 60% being collected in the month of the sale, 30% in the next month (second month), and the remainder in the following month (third month); Projected expenditure during January and February 2020 is as follows: o A new piece of equipment costing $94,874 was purchased in December 2019. Upon purchase, the agreed credit terms were 40% on purchased (in December 2019), 40% in January 2020 and the remainder in February 2020; o Manufacturing costs (paid for immediately upon production) are budgeted at $7 per swimsuit (Assume that all the swimsuits sold are manufactured in the same month); o Selling and administrative expenses are budgeted to be $10,100 each month.