please show your workRick`s company preparing a cash budget for the first two months of the coming year. The following data have been forecasted:Additional data:(1) Sales are all on credit. The collection pattern for credit sales is 60% in the month of the sale, 30% in the first month after the sale and 10% in the second month after the sale. Total sales in December of the prior year were $1,000,000.(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance the following month.(3) Operating expenses are paid in the month incurred.(4) The firm desires a minimum cash balance of $100,000 at the end of each month.(5) Loans are used to maintain the minimum cash balance.(6) Cash balance at February 1 is $120,000Prepare the cash budget for February.