The treasurer of Westmark Industrial, Inc., a wholesale distributor of household appliances, wants to estimate his company’s cash balances for the first three months of 2022. Using the following information, construct a monthly cash budget for Westmark for January through March 2022. Westmark’s sales are 20 percent for cash, with the rest on 30-day credit terms. Its purchases are all on 60-day credit terms. Does it appear from your results that the treasurer should be concerned about investing excess cash or looking for a bank loan?

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Westmark Industrial, Inc. Selected Information ($ thousands) 2021 (Actual) 2022 (Projected) October November December January February March Sales 360 420 1,200 600 Purchases 510 540 1,200 300 Wages payable monthly Principal payment on debt due in March Interest due in March Dividend payable in March Taxes payable in February Addition to accumulated depreciation in March Cash balance on January 1, 2022 Minimum desired cash balance 180 210 90 300 180 30 300 150 240 240 120 120