Please use the following information to develop a cash budget for January and February:

January February

Beginning balance of cash $ 25,000 ?

Cash collections from customers 150,000 200,000

Cash payments 205,000 110,000

Minimum cash balance at end of each month $20,000

Money is assumed to be borrowed at the beginning of any month when it is needed and paid back at the end of any month when it can be paid back. Interest is paid in the month when the amount borrowed is repaid. The interest rate is 18% per year.