Baker Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of November 30 is given below: Baker Company Balance Sheet November 30 Cash - $9,000 Accounts receivable - $54,000 Inventory - $30,000 Buildings and equipment, net of depreciation - $207,000 Total assets - $300,000 Liabilities and Stockholders' Equity Accounts payable - $63,000 Note payable - $14,500 Common shares - $180,000 Retained earnings - $42,500 Total liabilities and stockholders' equity - $300,000 The company is in the process of preparing a budget for December and has assembled the following data - Sales are budgeted at $200,000 for December. Of these sales, $60,000 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the November 30 accounts receivable will be collected in December. Purchases of inventory are expected to total $120,000 during December. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the November 30 accounts payable to suppliers will be paid during December. C.The December 31 inventory balance is budgeted at $40,000. D. Selling and administrative expenses for December are budgeted at $72,000, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $2,000 for the month. e. The note payable on the November 30 balance sheet will be paid during December, with $100 in interest. (All of the interest relates to December. f. New refrigerating equipment costing $6,500 will be purchased for cash during December. g. During December, the company will borrow $20,000 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required - 1-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases. b. Prepare a cash budget for December. 2. Prepare a budgeted income statement (in proper format) for December. 3. Prepare a budgeted balance sheet (in proper format) as of December 31.