When the treasurer of Apex Company approached the company's bank for short-term financing in the first water of 2020, he was told to support his request with a cash budget for this quarter. The tour was also told that it would be very helpful to the bank if he would indicate the month() in which he will be needing funds, as well as the amounts that will be needed, and the month(s) repayment will be made. 1. On January 1, 2020, the beginning of the first quarter, the company will have a cash balance of $5,500. 1. Sales for the last two months of 2019 and the first quarter of 2020 follow: November 2019.. -... $20,000 December 2019.. 40,000 January 2020. ........... 10,000 February 2020.. .... 40,000 March 2020............. .45,000 Past experience shows that 25 percent of a month's sales are collected in the month of sale, 70 percent in the month following scale, and 3 percent in the second month following sale. The remainder is uncollectible. c. Budgeted merchandise purchases and budgeted expenses for the first quarter are given below: January February March Merchandise purchases....... $15,000 $10,005 $12 290 Salaries and Wages............ 15,000 17,000 17,500 Marketing costs.............. 500 750 750 Rent payments...... . 1,000 1,000 1,000 Depreciation.... 422 422 422 Administrative expenses...... 2,000 2,500 3,500 Other overhead costs ............ 1,200 1,400 1,600 Ninety percent of the merchandise purchases are paid in the month of purchase and the remaining 10% is paid the following month December 2019 merchandise purchases are $15,000. d. Equipment costing $10,000 will be purchased for cash during January 2020. e. The company will receive $16,700 from shares to be issued in January 2020. f. The company must maintain a minimum cash balance of $5,000. An open line of credit is available at the bank for any borrowing that may be needed during the first quarter. All borrowing is done at the beginning of a month, and all repayments are made at the end of a month as cash becomes available. Borrowings and repayments of principal must be in multiples of $100. Interest on all amounts borrowed is paid only at the time of payment of principal. The interest rate is 10 percent per annum. Required: 1. Prepare a schedule of budgeted cash collections for January, February, March 2020 and the quarter in total 2. Prepare a schedule of budgeted cash payments for merchandise purchases for January, February March 2020 and the quarter in total 3. Prepare a cash budget for January, February March 2020 and the quarter in total 1 00. Interest on subecomes available al The interest