Budgets

LoLo Inc. provides exotica dancers. It employs four female dancers. Each dancer works an average of 200 hours a month. The companys controller has compiled the following information:

	Actual Data		Forecasted	Data
	November	December	January	February	March
Billings or Sales	$30,000	$35,000	$25,000	$20,000	$30,000
Selling Exp	10,000	11,000	9,000	8,000	10,500
Operating Exp	2,500	3,500	2,500	2,000	3,000
Overhead Exp	3,000	3,500	3,000	2,500	3,000

60% of the client billings are cash sales collected during the month of sale; 30% are collected in the first month following the sale; and 10% are collected in the second month following the sales. Operating supplies are paid for in the month of purchase. Selling expenses and overhead expenses are paid in the month following the costs incurrence.

The company had a bank loan of $12,000 at a 12% annual interest rate. Interest is paid monthly, and $2,000 of the loan principal is due on February 28. Income taxes of $4,500 for the last calendar year are due and payable on March 15. Each dancer earned $8.50 an hour plus tips, and all payroll-related employee benefit costs are included in overhead. Each of them worked 200 hours per month. The company anticipates no capital expenditures for the first quarter of the coming year. It expects its cash balance on December 31 to be $13,000.

Required: compute the Monthly Cash Budget for the three month period ended March 31.