1. Dallas Company has the following sales forecasts for the selected three-month period in the current year:

Month	Sales
October	$15,000
November	7,000
December	8,000

Collection pattern: 75% of sales are collected in the month of the sale,

25% is collected in the following month.

Accounts Receivable balance (October 1): $8,000

Cash balance (October 1): $6,000

Minimum cash balance is $6,000. Cash can be borrowed from the local bank (assume no interest charges).

Calculate the expected amount Dallas Company will need to borrow from the bank balance at the end of October in order to maintain its minimum cash balance. Assume that cash is received only from customers and that $26,000 is paid out during October.