Hare Manufacturing Company makes wax for automobiles. As part of overall planning, a cash budget is prepared quarterly each year. You have been asked to assist in preparing the cash budget for the fourth quarter of the company's fiscal year. The following information is available:

a. Sales:

Third quarter (actual)

$\$ 180,000$

Fourth quarter (expected 175,000 All sales are made on account, with 70 percent collected in the quarter in which the sales are made and 30 percent collected during the following quarter.

b. Materials purchases are scheduled as follows:

Third quarter (actual)

$\$ 90,000$

Fourth quarter (expected) 80,000 Materials are purchased on account and paid for at the rate of 80 percent in the quarter of purchase and 20 percent in the following quarter.

c. Direct labor and manufacturing overhead costs (including $\$ 6,000$ of depreciation) are expected to be $\$ 45,000$ and $\$ 21,000$, respectively, during the fourth quarter.

d. Selling and administrative expenses are expected to total $\$ 27,000$ during the fourth quarter, including $\$ 2,000$ of depreciation.

e. Plans have been made to purchase, for cash, $\$ 15,000$ of equipment during the fourth quarter.

f. The cash balance at the beginning of the quarter is $\$ 16,000$. The company can borrow money in $\$ 1,000$ multiples at 12 percent interest from a local bank. The bank assesses interest for a full quarter, both for the quarter in which the money is borrowed and for the quarter in which it is repaid. All interest is paid at the time of note repayment. Hare ran short of cash during the third quarter and had to borrow $\$ 8,000$ from the bank. Hare wishes to maintain a minimum cash balance of $\$ 16,000$

Prepare a schedule showing the cash budget and financing needs of Hare Manufacturing Company for the fourth quarter.