You have the following information about a restaurant in year 2005:

Sixty percent of sales revenue is cash; 40 percent is credit. Of the credit revenue, 70 percent is collected in the month following the sale and the remainder in the month after. Twenty percent of purchases are cash.
The remaining 80 percent is paid in the month following purchase. The budgeted income statement for December, year 2005, is

The wages and operating expenses included in the income statement will be paid in December, year 2005. Rent was prepaid in January for the entire year. Prepare a cash budget for the month of December, year 2005. Beginning cash on December 1 is $3,300.

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Actual sales revenue October $84,000 November 80,000 Actual purchases (cost of sales) October 32,000 November 30,000