Rainbow, Inc. began operations on January 1 of the current year with a $12,600 cash balance. Forty percent of sales are collected in the month of sale; 60% are collected in the month following sale. Similarly, 20% of purchases are paid in the month of purchase, and 80% are paid in the month following purchase. The following data apply to January and February:

January February

$41,000 $61,000 Sales

Purchases 33,000 46,000

Operating expenses 7,600 9,600

If operating expenses are paid in the month incurred and include monthly depreciation charges of $3,100, determine the change in Rainbows cash balance during February.