1. Coulson Industries, a defense contractor, is developing a cash budget for October, November, and December. Coulson's sales in August and September were $100,000 and $200,000, respectively. In addition, the following information is given: Sales: Sales of $400,000, $300,000, and $200,000 have been forecast for October, November, and December, respectively. Historically, 20% of the firm's sales have been for cash, 50% have generated accounts receivable collected after 1 month, and the remaining 30% have generated accounts receivable collected after 2 months. Bad-debt expenses (uncollectible accounts) have been negligible. Dividends: In December, the firm will receive a $30,000 dividend from stock in a subsidiary. Purchases: The firm's purchases represent 70% of sales. Of this amount, 10% is paid in cash, 70% is paid in the month immediately following the month of purchase, and the remaining 20% is paid 2 months following the month of purchase. Rent payments: Rent of $5,000 will be paid each month. Wages and salaries: Fixed salary cost for the year is $96,000, or $8,000 per month. In addition, wages are estimated as 10% of monthly sales. Tax payments: Taxes of $25,000 must be paid in December. Fixed-asset outlays: New machinery costing $130,000 will be purchased and paid for in November. Interest payments: An interest payment of $10,000 is due in December. Cash dividend payments: Cash dividends of $20,000 will be paid in October. Principal payments (loans): A$20,000 principal payment is due in December. Repurchases or retirements of stock: No repurchase or retirement of stock is expected between October and December. At the end of September, Coulson's cash balance was $50,000. The company wants to maintain a target cash balance of $25,000 at the end of every month. Prepare a monthly cash budget for October, November and December