Barnum Distributors wants a projection of cash receipts and cash payments for the month of November. On November $28,$ a note will be payable in the amount of $$98,500,$ including interest. The cash balance on November $1$ is $$29,600.$ Accounts payable to merchandise creditors at the end of October were $$217,000.$

The company$$s experience indicates that $70$ percent of sales will be collected during the month of sale, $20$ percent in the month following the sale, and $7$ percent in the second month following the sale; $3$ percent will be uncollectible. The company sells various products at an average price of $$11$ per unit. Selected sales figures are as follows.

Units

September$$actual $40,000$

October$$actual $60,000$

November$$estimated $80,000$

December$$estimated $50,000$

Total estimated for the current year $800,000$

Because purchases are payable within $15$ days, approximately $50$ percent of the purchases in a given month are paid in the following month. The average cost of units purchased is $$7$ per unit. Inventories at the end of each month are maintained at a level of $2,000$ units plus $10$ percent of the number of units that will be sold in the following month. The inventory on October $1$ amounted to $8,000$ units.

Budgeted operating expenses for November are $$220,000.$ Of this amount, $$90,000$ is considered fixed $($including depreciation of $$35,000).$ All operating expenses, other than depreciation, are paid in the month in which they are incurred.

The company expects to sell fully depreciated equipment in November for $$8,400$ cash.

Required:

Prepare a cash budget for the month of November, supported by schedules of cash collections on accounts receivable and cash payments for purchases of merchandise.