3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $80,000.00, and this was the ending cash balance in the cash account on December 31. Additional Data: Past experience shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Selling cost is $12 per unit sold Other expenses include $35,000 per month for rent, $104,000 for advertising, and $76,000 per month for depreciation All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (te January purchases of inventory are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when a borrowing need is identified and repayments are made at the end of a month hen the company has excess cash(.. this company does not take out additional loans to pay current loans) Also interest associated with a loan is only paid at the time when that loan is paid (e. a loan is only paid if there is enough cash to pay off the whole loan, any interest associated with it, and the company still has enough cash left over to meet its requirement for the minimum cash balance) 3. Prepare a cash budget for January through March and for the first quarter in total. The company maintains a minimum cash balance of $80,000.00, and this was the ending cash balance in the cash account on December 31. Additional Data: Past experience shows that 40% of sales are collected in the month of the sale, and 60% in the month following the sale. Selling cost is $12 per unit sold Other expenses include $35,000 per month for rent, $104,000 for advertising, and $76,000 per month for depreciation All costs are paid in the current month except inventory purchases, which are paid in the month following the purchase (te January purchases of inventory are paid in February). The company has an open line of credit with a bank and can borrow at an annual rate of 12%. For simplification assume that all loans are made at the beginning of the month when a borrowing need is identified and repayments are made at the end of a month hen the company has excess cash(.. this company does not take out additional loans to pay current loans) Also interest associated with a loan is only paid at the time when that loan is paid (e. a loan is only paid if there is enough cash to pay off the whole loan, any interest associated with it, and the company still has enough cash left over to meet its requirement for the minimum cash balance)