Fiona Enterprises., anticipates sales of the months are given below:

January - $25,000, February - $18,800, March - $23,700

Prepare a Cash Budget based on the information below for the months of January, February, and March.

• Credit sales are paid 50% the same month and 50% the following month (credit sales for December last year were $16,000)
• Credit purchases are 30% of sales;
• Credit purchases are paid full to the suppliers in the month they are incurred
• Wages and expenses are 20% of sales every month; paid in the month they are incurred
• In February, the company pays $35,000 cash for new equipment
• The opening cash balance is $12,000

Show total cash collections, total cash disbursements, and ending cash balance for each month.