Other Information

The Cash balance on December $31,2021,$ totaled $$102,000,$ but management has decided it would like to maintain a cash balance of at least $$700,000$ beginning on January $31,2022.$ Dividends are paid each month at the rate of $$2\mathrm{.}60$ per share for $5,280$ shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $$1,000$ increments at $9\%$ interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $$490,000$ equipment purchase is planned for February. Prepare a cash budget