1. Cashcow has an arrangement with its bank in which the minimum cash balance in its account is $10,000. If the balance falls below $10,000, a short term loan is automatically arranged. Interest is charged on the loan at a rate of 9% per year, and is calculated monthly and paid in the month after the loan is taken. The opening cash balance for January was $10,000. There was a short term bank loan owing on December 31 of $1,000. The cash receipts budget is complete. Complete the cash payments and cash budget for January to May.

   	Dec	Jan	Feb	Mar
   Cash Receipts		54,000	68,000	60,000
   Cash Payments
   Materials		22,000	26,000	25,000
   Wages		31,000	35,000	36,000
   Lease		900	900	900
   Rent		1,500	1,500	1,500
   ST Loan Balance	$1,000