Month	Sales
January	$100,000
February	$120,000
March	$150,000
April	$180,000
May	$150,000
June	$120,000
July	$150,000
August	$180,000

Actual November and December 2018 sales were $200,000 and $90,000, respectively. Cash sales are 45% of the total and the rest are on credit. About 70% of credit sales are typically collected one month after the sale and 30% the second month. Monthly inventory purchases represent 50% of the following months sales. The firm pays 40% of its inventory purchases in cash and the remainder in the following month. Wages are expected to be 25% of the months sales, plus commissions to sales associates estimated to be 10% of collectable sales. A major capital expenditure of $22,000 is expected in April and a quarterly dividend of $10,000 will be paid to shareholders in March and June. Monthly rent is $2,500 and other maintenance expenses are estimated at 15% of sales. The firm has an ending cash balance of $20,000 for December 2018.

Required:

1. prepare a cash budget based on the information above.