1. Karantika Ltd maintains an 18% open line of credit for $100,000. Interests are paid at the end of each month. Karantika Ltd maintains a minimum cash balance of $20,000. The company borrows on the first day of the month and repays loans on the last day of the month, both in multiples of $1,000. The income tax is 30%.
2. Karantika Ltd's balance sheet at 31 December 2019 is as follows:

ASSETS

LIABILITIES

Cash

32,000

Accounts payable **

64,000

Accounts receivable *

673,200

Interest payable

2,000

Inventory: Wood

22,400

Loan payable

40,000

Inventory: Glass

11,000

SHAREHOLDER'S EQUITY

Inventory: Finished goods

105,000

Share capital

801,600

Plant and equipment, net

450,000

Retained earnings

386,000

Total assets

1,293,600

Total Liabilities and Shareholder's equity

1,293,600

*At the beginning of the year, there is no allowance of doubtful debt ** Account payable is from the direct material purchase.

Required: Cash budget