Wolfe and Company began operations in early January with $12,000 in cash. Sixty percent of its sales are collected in the month of sale, and 40% in the month following the month of sale. Purchases are paid 20% in the month of purchase and 80% in the following month. Operating expenses, which include depreciation, are paid for in the month incurred, except no cash outflow is required for depreciation. The following projected data apply to the month of January of this initial year for the firm:

January

Sales $55,000

Purchases 40,000

Operating Expenses 9,000

Depreciation 2,500

Prepare a cash budget in good form for the firm for the month of January using these projected sales, purchases, and operating expense data.