The financial analyst for Sportif, Inc. has compiled sales and purchases estimates for the coming months of January through May as shown in Table 3.2 below. Historically, 75 percent of sales are for cash with the remaining 25 percent collected in the following month. Purchases are typically paid 70% in the month of purchase and 30% in the following month. The ending cash balance in January is $3,000. The company wants to maintain a minimum cash balance of $4,000. Prepare a cash budget for the months of February and March, noting any needed financing or excess cash needed.

Table 3.2

Month	Sportif, Inc. Sales	Purchases
January	$ 5,000	$6,000
February	6,000	$7,000
March	10,000	$4,000
April	10,000	$5,000
May	10,000	$5,000