WayOutBack Cooperative is a retailer of Summer and Winter camping equipment for back woods camping enthusiasts. While negotiating a new line of credit, the bank has asked for a cash budget for months of January, February, and March 2021 to determine the amount of credit required by the company. The manager has estimated sales and purchases for the next three months and provided the actual sales and purchases for the last month. Month Sales Purchases December 2020 (actual) $55,000 $18,000 $34,000 $ 22,500 January 2021 (forecast) February 2021 (forecast) March 2021 (forecast) $28,700 $45,000 $41,600 $ 21,000 30% of monthly sales are paid in cash. 70% of monthly sales are paid using credit cards and are reimbursed to WayOutBack in the month following the sale (1-month lag). Purchases are 20% cash and are paid in the month of the purchase with the remainder being paid in the month following the purchase. General and administration expenses are $10,000 per month. This includes monthly depreciation expenses of $2,000. In February a $6,000 income tax payment will be made. In addition, the Cooperative must prepay $40,000 in January for summer inventory that will be received in March. Ending cash balance for the month of December is anticipated to be $14,000 Instructions: Prepare a monthly cash budget for WayOutBack Cooperative for January, February, and March. Clearly indicate the loan requirements at end of each month. 7 B I DEC JAN FEB MAR