Olde Corporation is preparing a cash budget for the first two months of the coming year. The following data have been forecasted:

	January	February
Sales	$750,000	$800,000
Purchases	450,000	480,000
Operating Expenses
Payroll	146,800	167,400
Advertising	52,700	62,800
Rent	8,750	8,750
Depreciation	23,750	23,750
End of January balance:
Cash	120,000
Bank loan	480,000

Additional data:

(1) Sales are 40% cash and 60% credit. The term of credit sales is 2/10, n/30. The collection pattern for credit sales is 80% in the month following the sale, of which 75% are collected within 10 days, and 20% in the month thereafter. Total sales in December of the prior year were $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 between $100,000 and $150,000 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 $150,000. Required: Prepare the cash budget for February.