=+Total budgeted marketing, distribution and customer service costs for the year are $600000. Of this amount, $120000 are considered fixed (and include depreciation of $30000). The remainder vary with sales. Both fixed and variable marketing, distribution and customer service costs are paid as incurred.

Required Prepare a cash budget for December 2014 and January 2015. Supply supporting schedules for collections of receivables; payments for merchandise; and marketing, distribution and customer service costs.