Here are some important figures from the budget of Nechako Nougats Inc. for the first quarter of 2020:

	January			February		March
Credit sales		$400,500		$340,000		$520,500
Credit purchases		150,900		165,300		160,300
Cash disbursements
Wages, taxes, and expenses		40,040		65,000		60,100
Interest		12,580		10,580		13,000
Equipment purchases		75,800		115,000		15,000

The company predicts that 5% of its credit sales will never be collected, 45% of its sales will be collected in the month of the sale, and the remaining 50% will be collected in the following month. Credit purchases will be paid in the month following the purchase.

Cash in the beginning of the first quarter is $200,000.

In December 2019, credit sales were $250,000, and credit purchases were $160,000. Assume that the minimum cash balance for each month is $150,000.

1. Using this information, prepare the cash budget.
2. Compute the cash surplus (deficit) for each month.
3. What would be your analysis based on this first-quarter budget?