On September 30, 2017, the Parker Corporation had a balance of $50,500 in its cash account.

Additional information:

• Actual sales:

August........................$180,000

September......................200,000

• Budgeted sales:

October........................$195,000

November.......................210,000

• 10% of each month's sales are cash sales. Of the remaining credit sales, collections are 70% in the month of the sale and 25% in the following month. The remaining 5% is uncollectible.

• Inventory costs average 75% of sales (i.e.. October sales will require $146.500 of inventory and November sales will require $157.500 of inventory).

• Monthly purchases of inventory are 80% of next month's projected inventory needs. Thirty percent of the purchases are paid for in the month of purchase, with the remaining 70% paid in the month following purchase. September's inventory purchases totaled $117,000.

• Selling and administrative expenses are $50.000 per month. Of this amount, $12,000 is depreciation.

• The company plans to purchase a new piece of production equipment costing $50.000 at the end of October. It will also sell a parcel of unused land for $10,000 during October.

• All obligations, except inventory purchases, are paid in the month incurred.

• Parker desires a minimum cash balance of $50,000. Short-term borrowing in increments of $1,000 is available to cover any shortfalls. Borrowings are made at the beginning of the month and repayments are at the end of the month. Interest is 18% per year, and interest payments must be made whenever there is a principal repayment.

• Dividends of $10.000 were declared in September and will be paid in October.

REQUIRED:

Prepare a cash budget for October, consisting of cash receipts, disbursements and any borrowing/repayment. such that the minimum cash balance is not less than $50.000. If an amount is 0, you must enter 0. ENTER ALL AMOUNTS IN WHOLE DOLLARS.