Refer to Oakwood Music, Inc. The average cost of a piano is $500. Merchandise is paid for in the month following its purchase. All other expenses are paid in the month in which they are incurred. On average, a piano sells for $1,500. Of each sale, 40 percent of the sales price is collected in the month of sale. The balance is collected in the month following the sale. 

Required:

Prepare a cash budget for the first three months of next year. The beginning cash balance on January 1 is budgeted to be $50,000.