Prepare a cash budget for the first quarter of the year based on the following information. The beginning cash balance is $5,000.

Month	Sales ($)	Purchases ($)	Operating Expenses ($)	Depreciation ($)
January	30,000	15,000	8,000	1,000
February	25,000	12,000	7,000	1,000
March	35,000	18,000	9,000	1,000

Requirements:

1. Prepare the cash budget for each month.
2. Determine the ending cash balance for each month.
3. Analyze the cash flow position.
4. Suggest ways to manage any cash shortfalls.

Evaluate the impact of a delayed payment from a major customer in February.