Medical Supplies, Inc., purchases first-aid items from large wholesalers. Medical Supplies then assembles and sells first-aid kits to businesses and contracts to maintain the first-aid kits. You have been asked to prepare a cash budget for January. The following information is provided:

a. Cash in bank on January 1 is $\$ 33,000$.

b. Actual sales for October, November, December, and projected sales for January are as follows:

\begin{tabular}{lcccr}

\hline & October & November & December & January \\

\hline Cash $\ldots \ldots \ldots \ldots \ldots \ldots \ldots$ & 12,000 & 11,500 & 8,200 & 12,500 \\

Credit. $\ldots \ldots \ldots \ldots \ldots \ldots$ & 31,000 & 29,400 & 32,000 & 28,000 \\

\hline

\end{tabular}

Payments on credit sales are received 50 percent in month of sale, 31 percent in the month following sale, and 15 percent and 4 percent in the second and third months, respectively, following the sale.

c. Total administrative and selling expenses (all cash) are $\$ 25,000$.

d. Purchases are always paid 30 days after delivery. Purchases for October, November, and December were $\$ 28,000, \$ 39,000$, and $\$ 29,500$, respectively.

e. Cash dividends of $\$ 22,000$ are paid.

f. Any cash excess is used to purchase 30-day government securities, and any cash deficiency is compensated by short-term borrowing.

g. Management desires a minimum balance of $\$ 9,000$ in the bank.

Prepare a cash budget for the month of January.