Problem 8-9 Preparing a Cawh Budgat Key Company is in the process of prepering a cash budget for 1990. The company collects 50% of its sales in the quarter the ale is made, 40% in the quarter following the sale, and the remainder in the subsequent quarter. Of all purchases, 70% are paid for in the quarter in which they are purchased, with the roruaining 30% paid for in the following quarter. Selling expenses are $18,000 each quarter plus 10% of sales dollars. Administrative expenses are $90,000 per quarter, including $30,000 of depreciation expense. The company is planning to buy equipment during the second quarter at a cost of $16,000 and to pay a $9,000 dividend in the first quarter. The cash balance as of January 1,1990 is $21,000. The following sales and purchases data have been compiled for the preparation of the budget: Reuired: Prepare a cash budget by quarter and in total for the first two quarters of 1990