. You are the manager of Forest Products Inc. On January 1, you expect the following balances.

Cash on hand		$ 9,000
Accounts receivable		100,000			(75,000 from December, 25000 from November)
Inventory		40,000
Prepayments & deposits		1,000
Total current assets		$150,000
Current trade liabilities					$ 75,000
Expected sales revenue for January					$180,000
Expected cost of goods sold for January					$120,000
Expected expenses for January					$ 10,000

During January you expect to receive:

• All the $25,000 outstanding from November

• $50,000 of the amount outstanding from December
• 50% of Januarys sales revenue (the remainder being sold on credit)

During January you expect to pay:

• $75,000 current trade liabilities

• Inventory bought in January will be paid for in February
• All the expenses, except $1,000 of depreciation and $200 expiration of prepayments

Required

Prepare a cash budget for January.