Ralph's Horse Feed Ltd. is a retailer that sells bales of specialized horse feed. The company is planning its cash needs for the month of January, 2021. The statement of financial position showed the following at December 31, 2020.

	Assets
Current
Cash		25,000
Accounts Receivable		80,000
Inventory		12,000
		117,000
PPE, net		900,000
		1,017,000
	Liabilities
Current
Operating loan		190,000
Accounts payable		12,514
		202,514
Non-current borrowings	700,000
		902,514
	Shareholders' Equity
Share capital		70,000
Retained earnings		44,486
		114,486
		1,017,000

Other information: a. Sales are 30% for cash and 70% on credit each month. January sales are projected to be $120,000 (2,000 bales). The gross profit ratio [[sales - COGS)/sales] is estimated at 50%. b. Credit sales are collected over a three-month period with 20% collected in the month of sale, 70% in the following month, and 10% in the second month following sale. November 2020 credit sales totaled $80,000 and December credit sales totaled $90,000. c. 60% of a month's inventory purchases are paid for in the same month. The remaining 40% are paid in the following month. Accounts payable at December 31, 2020 relate solely to inventory purchases. d. The company maintains its ending inventory levels at 20% of the cost of the merchandise to be sold in the following month. February 2021 sales are budgeted at $110,000. The gross profit ratio is estimated to be 45%. e. Variable expenses besides cost of goods sold relate to commissions on sales. Commissions amount to 10% of each month's total sales. They are paid in the month incurred. f. Fixed expenses total $15,000 per month. They are composed of $5,000 of depreciation, $8,000 of salaries and benefits, and $2,000 of other operating expenses. All nondepreciation items are paid in cash by the end of each month. g. The company pays a $2,000 monthly cash dividend to shareholders.

h. The operating loan is not due on demand. Interest on the operating loan and non-current debt is 1% per month, calculated on the balance at the start of each month. Interest is paid in cash each month. i. The non-current loan is repayable at $1,000 per month. j. The corporate income tax rate is 25% of income before income taxes. Income taxes will be paid in cash in April 2021. No income taxes were owing at December 31, 2020. k. January budgeted cash purchases of property, plant, and equipment are $120,000. Depreciation will be unaffected. l. Management wants to maintain a cash balance of $20,000 at the end of each month. The maximum operating loan is $200,000. Additional non-current borrowing will be incurred to make up any cash deficiency.

Required: 1. Record the above information in a budget transaction worksheet like the one shown on the following page.

ASSETS LIABILITIES + S/H EQUITY Trans. Cash + Acc. Rec. + Invent. + PPE Op. E + Acc. Pay. + + + Loan L/T Debt Share Ret. Capital Desc. Earn. cf. 25,000 80,000 12,000 900,000 190,000 12,514 700,000 70,000 44,486