Olde Corporation is preparing a cash budget for the first two months of the coming year. The following data have been forecasted: Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern in credit sales is 80% in the month following the sale and 20% in the month thereafter. Total sales in December of the current year are expected to be $1,000,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and the balance the following month. (3) Operating expenses are paid in the month incurred. (4) The firm desires to maintain its cash balance of $110,000 at the end of each month. (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever the cash balance exceeds $110,000. Required: Prepare the cash budget for February