You manager wants you to put together a 4 month cash budget from January to April based on the following information.

1. Unit sales for January = $10,000, Feb = 11,200, Mar =12,544, Apr = 14,049
2. Selling price per unit is $3.05. Sales are 50% credit and 50% cash. Sales terms are net 30 days
3. Cost of Goods per unit is $1.95. Terms of Purchase are net 30 days
4. Opening Accounts Payable balance in January is $5,000 and the Opening Cash balance is 10,000
5. A minimum cash balance of $3,000 is required at all times
6. Expenses are 45% of Sales and are paid in the month they are incurred
7. The company will be purchasing new equipment for $12,000 and must pay for in in January

What recommendations would you provide based on the results of this cash budget