Management for Fire Ltd. has budgeted the following: Monthly sales Cash payments for purchases of Inventory Selling and administrative expenses February March April $200,000 $215,000 $230,000 87,000 83,000 90,000 67,000 64,000 65,000 Additional Information: The Company has already prepared a schedule of cash collections and expects that cash collected from all cash and credit sales will be $185,000 in March and $200,000 in April. Inventory purchases are paid for in the month after they are incurred. Selling and administrative expenses are paid in the month incurred and include monthly depreciation of $4,000. The company is expected to buy equipment costing $145,000. They will pay a cash deposit of $65,000 in March, $12,000 in April, and the remaining balance in June. Dividends of $35,000 will be declared and paid in April. Cash balance on March 1" is $8,000. A minimum balance of $6,000 is required at the end of March and April and the company will borrow cash to ensure this minimum balance at the end of each month.