Budgeting Process and Cash Budget Preparation: A company is preparing its cash budget for the next quarter. The company expects cash receipts from sales of $200,000 in January, $250,000 in February, and $300,000 in March. Cash payments for expenses are projected to be $150,000 in January, $180,000 in February, and $200,000 in March. Additionally, the company plans to repay a $50,000 loan in February. Prepare the company's cash budget for the next quarter and discuss the importance of cash budgeting in managing liquidity and avoiding cash shortages.