The historical cash collection pattern for credit sales have been budgeted as follow: (5 Marks)

Budgeted	Jan	Feb	March
Cash Collection	$101,000	$160,500	$174,000
Cash Disbursement	116,000	121,000	140,000
Proceeds from the sales of assets	-----	----	5,000

• Mery and Kays maintain a 40,000 minimum cash balance at all times, Financing is available at 4% interest rate, with barrowing taking place at the beginning of month and repayment occurring at the end of the month, interest is paid at the end of the month with repayment principal.
• Prepare a cash budget