answer option:

1) 470,000/520,000/450,000/500,00

2)95,000/117,500/72,500

3)74,000/80,000/86,000

4)0/100/1,500

5)1,000/9,000/3,000

Cash planning for December: will there be enough money at the end of December to invest in new office equipment costing 90,000? To find an answer to that final question, please solve the following sub-questions: The company plans to sell 200,000 units of a Christmas decoration at a price of 2.50 per unit in December. All but 10% of the revenues will be collected in the month of December, so 10% of the December revenues will be collected later From the sales revenue recorded in November, the company expects cash collections of 20,000 in December Therefore, in total, cash collections from sales activities will amount to in December For the month of December, the following expenses are planned/expected to be incurred: Planned sales at cost (COGS, or COS): 60,000. The amount for November-purchases, that still has to be paid in December, is 50,000. Purchases in December are planned to be 30,000, with 75% having to be paid in cash in December, the rest will be paid in January Therefore, the cash that has to be spent in December to pay for purchasing activities is Salary expense: 85,000 ... all paid in December Administrative expenses: 80,000 ... (including 6,000 depreciation!); paid in December Therefore, the cash that has to be spent in December to pay for administrative expenses is Bad debt expense: 100 charged to P&L in Deo to receive the ending balance of 1,500 in "allowance for doubtful receivables" The amount of bad debt expense included in the cash budget for December is . Selling expenses 68,000 .. all paid in December Electricity expense for Dec: 3,000 ... 3,000 refers to one month only! At the beginning of December, the payment has to be effected for the following 3 months ie, the charges for Dec-Feb (3 months!) have to be paid in December! The amount of electricity expense to be included in the cash budget for December is