Splish Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: January February Sales $347,000 $403,000 Direct materials purchases 121,000 111,000 Direct labour 85,000 111,000 Manufacturing overhead 59,000 75,000 Selling and administrative expenses 75,000 80,000 All sales are on account. Splish expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows: 1. Credit sales: November 2022, $200,000; December 2022, $278,000 2. Purchases of direct materials: December 2022, $90,000 3. Other receipts: January-collection of December 31, 2022, notes receivable $5,000, February-proceeds from sale of securities $5,000 4. Other disbursements: February-payment of $20,000 for land The company expects its cash balance on January 1, 2023, to be $50,000. It wants to maintain a minimum cash balance of $40,000.