Jumobtron Inc. had monthly sales of $45,000 in January and February, and projects monthly sales of $55,000 for March, April, and May.

The firms monthly purchases are equal to 65% of the next months sales.

The firm collects 75% of its receivables in 30 days and the remaining in 60 days, and pays its payables in 30 days.

The firms other expenses such as wages and rent, which are due every month, are equal to 28% of the monthly sales.

The firm currently carries the monthly compensating balance requirement of $12,000 in its bank account, which charges a 1% monthly interest rate on short-term borrowing that is due monthly.

All sales and purchases are on credit. 1. Prepare a monthly cash budget for the months of March and April. Make sure that you include the beginning and ending cash balances, itemized cash collections and disbursements, and cumulative borrowing for each month!