Cyclone Inc. is a wholesaler of mattresses that began business on January 1. The companys sales policy requires 40% payment in the month of sale, 30% the next month, and 30% due the third month. Purchases will be paid 60% in the month of purchase and 40% in the following month. Cyclone expects to begin operations in January with $5,000 in cash. Cyclones expected transactions from January to May are as follows:

January February March April May

Sales $50,000 $60,000 $30,000 $100,000 $65,000

Purchases 20,000 15,000 7,500 40,000 25,000

Budgeted cash collections for April are

	$36,000
	$40,000
	$63,000
	$75,000
	$100,000