The company's cash budget shows an expected cash balance of *5,880,000 at December 31,2020. All sales and purchases are on account. It is expected that 60S? of quarterly sales are collected in cash within the quarter and the remainder is collected in the following quarter. Direct materials purchased from suppliers are paid 50% in the quarter incurred and the remainder in the following quarter. Purchases in the fourth quarter were the same as the materials used.