3. Budgeting: 15 mark:s Spatial Prints is a specialised printer that prints 3D images for the motor trade industry. Spatial began operations six months ago. Sales have exceeded management's most optimistic projections. The budgeted income statement for Spatial Prints for each of the next three months follows: $108,000 28,800 Sales Beginning inventory Purchases Ending inventory Cost of goods sold Gross profit Operating expenses Operating profit $84,000 $136,000 41,200 97,800 25,200 32,400 40,800 Sales are made on credit and collected 60% in the month after the sale is made and 40% in the second month after sale. Purchases are paid 80% in the month in which the merchandise inventory is purchased and 20% in the subsequent month. Operating expenses includes depreciation of $5,000 and the cash expenses are paid in the month in which the cost is incurred Cash on hand at 30 September is estimated to be $72,000. Collections of 30 September accounts receivable were estimated to be $60,000 in October and $24,000 in November. Payments of 30 September accounts payable in October were estimated to be $32,000 including $20,000 for shop fittings erected during October Required: (a) Prepare a cash budget for the months of October, November and December. (9 marks)