You have the following information about a restaurant in Year 0007:

■ Actual sales revenue in November was $80,000.

■ Actual purchases (cost of sales) in November was $30,000.

Sales revenue will be 40% cash. Credit card sales revenue is 60% of sales, of which 96% is collected in the month of sales; the remaining 4% is collected early in the following month. Purchases of inventory, 20% is paid in the month of purchase and the remaing 80% is paid in the month following the purchases. The condensed budgeted income statement for December, Year 0007, follows:

The wages and operating expenses included in the budgeted income statement will be paid in December, Year 0007. Rent was prepaid in January for the entire year. Prepare a cash budget for the month of December, Year 0007. November ending cash is $4,800.LO1

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Sales revenue $75,000 Cost of sales $29,000 Wages expense 21,000 Operating expenses 14,000 Rent expense 5,500 Depreciation expense 2,500 Total expenses (72,000) Operating income $ 3,000