Good Products Lto prepares monthly cash budgets. Below is a summary of information taken from the firm's financial records. The following estimates relate to April: Credit sales 320,000 Credit purchases 210,000 Wages expense 88 000 Administration expenses 36,000 Cost of sales 180,000 Depreciation expense 12,000 Cash payment for new machinery 20,000 Cash proceeds from the sale of old machinery 7,500 Rent expense 1,200 All sales are on credit. Collections from debtors (accounts receivable] normally have the following pattern: 60 per cent in the month of sale, 30 per cent in the month following the sale, and 10 per cent in the second month following the sale. Sales in January, February and March were $295,000, $266,000 and $302,000 respectively. . Credit purchases are paid for in the month following the purchase. Credit purchases in March were $182,000 and in February were $194,000. The company plans to repay a $30,000 loan in May. The cash balance at 1" April was $4,000. Wages and Administration expenses are paid in the month in which the expense arises. Rent was paid in advance in March