The treasurer of Systems Company has accumulated the following budget information for the first two

months of the coming year:

Sales

Manufacturing costs

Selling and administrative

Expenses

Capital additions

The company expects to sell about $35\%$ of its merchandise for cash. Of sales on account, $80\%$ are expected

to be collected in full in the month of the sale and the remainder in the month following the sale. One$-$quarter

of the manufacturing costs are expected to be paid in the month in which they are incurred and the other

three$-$quarters in the following month. Amortization, insurance, and property taxes represent $$6,400$ of the

probable monthly selling and administrative expenses. Insurance is paid in February and a $$40,000$

installment on income taxes is expected to be paid in April. Of the remainder of the selling and

administrative expenses, one$-$half are expected to be paid in the month in which they are incurred and the

balance in the following month. Capital additions of $$250,000$ are expected to be paid in March.

Current assets as of March $1$ are composed of cash of $$45,000$ and accounts receivable of $$51,000.$ Current

liabilities as of March $1$ are composed of accounts payable of $$121,500($ $$102,000$ for materials purchases

and $$19,500$ for operating expenses$).$ Management desires to maintain a minimum cash balance of $$20,000.$

Prepare a monthly cash budget for March and April.