4. Cash Budget (20 points) The following information pertains to Monroe Company: Month December January February March Sales $130,000 $68,000 $87,000 $106,000 Purchases $65,000 $35,000 $46,000 $48,000 Cash is collected from customers in the following manner: o Month of sale 30% o Month following the sale 65% o Written off as uncollectible 5% 45% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Labor costs are 20% of sales. Other operating costs are $42,000 per month (including $8,000 of depreciation). Both of these are paid in the month incurred. The cash balance on January 1 is $6,900. A minimum cash balance of $6,000 is required at the end of the month. Money can be borrowed in multiples of $1,000 at the beginning of the month. Interest on any borrowings is paid when principle is repaid. Repayments in $1,000 increments and interest payments are made at the end of the month with interest charged at a rate of 1% a month. Prepare a cash budget for January, February and March and for the first quarter