14. (2pts, plus 2pt EC) Fidler, Johnson, Struhar & Webb Academic Excellence Co, presented the following budgeted information in order to prepare their November Cash Budget: Oct Noy Dec Sales $110.000 $130,000 $166,500 Merchandise purchases $ 85,000 S 97,500 S105,000 Selling & Admin Expenses $51.000 $ 55,000 $59,000 Cash Budget assumptions: All sales are on credit and are collected 40% in the month of the sale, 58% in the month following the sale, with 2% uncollectible (but still due), Merchandise purchases are paid in full the month following the month of purchase. The monthly selling and administrative expenses above include $9,000 of depreciation expense relating to display fixtures and warehouse equipment. All selling and administrative costs are paid in cash in the month incurred. Management requires a minimum ending cash balance of $10,000. Any amount below this will be borrowed, using a bank credit line, but all bank borrowings must be in whole increments of $1.000. All borrowings are made at month-end. Ignore any interest charges. a) Required (2 pts): Referring to pg 317 as a guide, prepare a Cash Budget for the month of November only, showing all details. The company expects to have $14,000 of cash on hand November Ist. November 1st Beginning Cash Bal (Labels/descriptions in this column) $14,000 (amounts) Show your calculations in this column (Note: the number of rows shown is generic). Ending Cash Balance at Nov 30th b) Optional: IPT EC Bonus Question: What would be the Accounts Payable balance (relating to purchases) at 11/30 (end of November)? c) Optional: IPT EC Bonus Question - You MUST show & label your work for credit here! When preparing a budgeted ending December 31Balance Sheet, what would be the Accounts Receivable ending balance? Assume there are no uncollectible accounts at the September 30 Balance Sheet date