CASH BUDGET 1. The ABC Company sales for December 2019 and forecast for the first three months of 2020 are as follows: Additional information provided is as follows: (i) Raw material is purchased each month at 80% of the previous month's sales. The supplier is paid a month of delivery. For example, purchases for January are based on sales for December and payment is made in January. (ii) Seventy percent (60\%) of sales will be for cash, while the remaining 40% will be collected in the first month following the sale. (iii) Wages total $3,500 each month. (iv) Other expense is $2,900 each month. (v) Taxes will be paid on March 31: $2,250 (vi) Equipment costing \$7,000 was sourced. A discount of $2,000 was negotiated. The equipment will be delivered in February and will be paid for cash on delivery. (vii) The ABC Company's cash balance on 31 December 2019 was $7,500. However, the firm has decided to use $10,000 as the minimum balance applied going forward. (viii) Short-term credit is arranged at an interest rate of 12 percent per annum ( 1 percent per month) to be paid monthly. The interest on any short-term borrowing is paid in the month after it is incurred. Required: Use the information above to prepare the cash budget for The ABC Company covering January to March 2020