The DEF Co$.$ has planned the following sales for the next three months:

Jan Feb Mar

Budgeted sales $$40,000$ $$50,000$ $$70,000$

Sales are made $20\%$ for cash and $80\%$ on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern:

Month of sale $60\%$

First month following sale $30\%$

Second month following sale $8\%$

Uncollectible $2\%$

The company requires a minimum cash balance of $$5,000$ to start a month. The beginning cash balance in March is budgeted to be $$6,000.$

Required:

a$.$ Calculate the budgeted cash receipts for March.

b$.$ Use the following additional information for March to prepare a cash budget for the month of March. Use this information and the budgeted cash receipts you calculated for part $($a$)$ above. The company can borrow in any dollar amount and does not pay interest. $$

Inventory purchases $($all paid in March$)$ $$28,000$

Operating expenses $($all paid in March$)$ $$40,000$

Depreciation expense for March $$5,000$

Dividends paid in March $$4,000$

c$.$ What is the AR balance at the end of March?