red lagement for Fire Ltd. has budgeted the following: Monthly sales Cash payments for purchases of Inventory Selling and administrative expenses Additional information: February $570,000 March $490,000 284,000 285,000 67,000 64,000 Time left 0:48:50 April $530,00 290,000 65,000 The Company has already prepared a schedule of cash collections and expects that cash collected from all cash and credit sales will be $360,000 in March and $375,000 in April. Inventory purchases are paid for in the month after they are incurred. Selling and administrative expenses are paid in the month incurred and include monthly depreciation of $7,000. The company is expected to buy equipment costing $120,000. They will pay a cash deposit of $25,000 in March, $12,000 in April, and the remaining balance in June. Dividends of $35,000 will be declared and paid in March. Cash balance on March 1 is $25,000.