Charlie Co. has planned the following sales and purchases for the next three months:

	January	February	March
Budgeted Sales	$40,000	$50,000	$70,000
Budgeted purchase of inventory	$35,500	$46,700	$95,500

Customers pay 20% of the sales in cash at the time of the transaction and 80% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern:

Month of sale	60%
First month following sale	30%
Second month following sale	8%
Uncollectible	2%

The company pays 45% of the cost of the inventory in the month of purchase, and 55% during the following month.

The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000.

The following additional information has been provided for March:

Operating expenses	$25,000
Dividends paid in March	$4,000

The operating expenses include $5,000 depreciation. All operating expenses are paid during each month.

Required: a. Calculate the budgeted cash collection for March.

b. Calculate the balance of accounts payable at the end of March. c. Prepare a cash budget in good form for the month of March (The company can borrow in any dollar amount and will not pay interest until April)