A monthly cash budget for Gomez's Fish Market for the first quarter of 2023 needs to be prepared. Cash on January 1, 2023, is $10,000. (20 pts)

Total monthly sales are as follows:

November 2022 $120,000

December 2022 110,000

January 2023 (est.) 130,000

February 2023 (est.) 120,000

March 2023(est.) 140,000

April 2023 (est.) 130,000

The sales are 40% cash and 60% credit card. American Express is the only acceptable credit card at Gomez's, and the charges are converted to cash the day after the sale. Assume the sales are even throughout the month, and that the brokerage charge is 4%.

Expected other income is $2,500 from interest to be received in February. In addition, in February a range with a net book value of $400 is expected to be sold for cash at a $700 gain on the sale.

Food and beverages are paid for the month following the sale and average 30% of sales. Labor is paid for the last day of the month and averages 420% of sales.

Other expenses approximate $8,000 per month. During January, equipment costing $15,000 is to be purchased and paid for. In February, $30,000 is expected to be expended on new equipment. Funding for this expenditure in part comes from a long-term loan of $15,000 from Delaware National Bank.