Pink Martini Corporation is projecting a cash balance of $32,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $183,000. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $38,000. Other information gathered for the first quarter of 2020 is as follows: sale of equipment $5,000; direct labour $73,000, manufacturing overhead $38,000; selling and administrative expenses $48,000; and purchase of securities $13,000. Pink Martini wants to maintain a balance of at least $23,000 cash at the end of each quarter.

Cash budget for the first quarter