Below are budgeted data for Flour International:

Sales Purchases

October $ 50,000 $ 20,000

November 70,000 60,000

December 100,000 50,000

All sales are on credit. 60% of the sales are collected in the month of sale and the remaining in the month following the sale.

30% of purchases are paid in the month of purchase and 70% in the following month.

Operating expenses are $40,000; which includes depreciation of $2,000 and property tax expense of $3,000.The property taxes were paid in July of the current year.

Cash balance, December 1 is $12,000

Required: By preparing a cash budget, calculate the cash balance on December 31.