Denton Company is a retail store that specializes in outdoor sporting goods. They have budgeted activity for January using the following data:

January cash sales	$50,000
January credit sales	380,000
December cash sales	75,000
December credit sales	420,000
Selling and administrative costs (paid in month of purchase)	50,000
Depreciation expense	25,000
Merchandise Inventory, January 1	200,000
Merchandise Inventory, January 31	210,000
Cost of goods sold	172,000
Beginning cash balance	25,000
Equipment purchase made in January paid in cash	200,000
Minimum cash balance required	25,000
All merchandise purchases are paid in cash.
Credit sales are collected 60% in the month of sale, 35% in the following month, and 5% is deemed uncollectible.
Denton has a $50,000 line of credit that can be advanced in $1,000 increments.

Required:

1) Prepare a cash receipts schedule for the month of January.

2) Prepare a cash disbursements schedule for the month of January. (HINT: Calculate merchandise purchases: Beginning inventory + purchases cost of goods sold = ending inventory)

3) Prepare a cash budget for January in good form.