Inc began operations on January 1 of the arrent year with a S 12.000 cash balance. Forty percent of ales are ollected in the month of sale, eo% are colded in the month following sale. Similarly, 20% of purchases are paid in the month O, purchase and 80% re paid in the month follo ng purch ase. The tollo ng data spply to January and January February 35,00 30,00 7,000 55,00 40,00 9,000 Sales Purchases Operating expenses If operating expenses are paid in the month inourred and indlude monthly depreciation charges of $2.500. determine the change in Rainbows cash balance during February $7.500 inarease S2.000 increase $5,000 increase $4,500 ingease None of the answers is ?rect