Techlabs operates a computer training center. The following data relate to the preparation of a master budget for January 2012.

• At the end of 2011, the company's general ledger indicated the following balances:

Debits Credits

Cash---------------------------$50,000----------------- Accounts Payable-----------$40,000

Accounts Rec.---------------$40,000---------------- Note Payable------------------$60.000

Equipment (net)-------------$120,000-------------- Common Stock---------------$30,000

----------------------------------------------------------------Retained earnings----------$80,000

• Tuition revenue in December 2011 was $80,000, and tuition revenue budgeted for January 2012 is $90,000.
• 50% of tutiton revenue is collected in the month earned and 50% is collected in the subsequent month. The receivable balance at the end of 2012 reflects tuition earned in December 2012.
• Monthly expenses (excluding interest expense) are budgeted as follows: salaries, $40,000; rent, $5,000; depreciation on equipment, $7,000; utilites, $800; other, $2,000.
• Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The $40,000 payable at the end of 2011 represents money owed for the purchase of computer equipment in December 2011.
• The company intends to purchase $30,000 of computer equipment in January 2012. The anticipated $7,000 per month of depreciation reflects the addition of $1,000 of monthly depreciation related to this purchase.
• The note is at 10% per annum and requires monthly interest payments of $500. The payments are mae on the 20th of each month. The principal must be paid in February of 2013.
• The tax rate is 35%.

Required: Complete the following budget.

Cash Budget for January 2012

Cash Receipts

Collection of December 2011 tuition----------------------------------------- [amount]

Collection of January 2012 tuition-------------------------------------------- [amount]

Total cash receipts--------------------------------------------------------------- [amount]

Cash Disbursements

Payment of salaries-------------------------------------------------------------- [amount]

Payment of rent------------------------------------------------------------------- [amount]

Payment of utilities--------------------------------------------------------------- [amount]

Payment of other expenses---------------------------------------------------- [amount]

Payment of purchases of computer equipment--------------------------- [amount]

Payment of interest on notes-------------------------------------------------- [amount]

Payment of taxes----------------------------------------------------------------- [amount]

Total disbursements---------------------------------------------------------------- [amount]

Plus beginning cash balance------------------------------------------------------ [amount]

Ending cash balance---------------------------------------------------------------- [amount]