Bob's Modern Fumes Company provides liquid nitrogen and various other deadly fumes. Data regarding Bob's operations follow.

• Sales are budgeted at $300,000 for November, $320,000 for December, and $310,000 for
• Collections are expected to be 65% in the month of sale, 30% in the month following the Sale, and 5% uncollectible. November beginning accounts receivable is $93,000.

The cost of goods sold is 75% of sales.

• The company purchases 70% of its deadly fumes in the month before the sale and 30% in the month of the sale. Payments for purchases are 40% in the month and 60% in the following month.
• Other monthly expenses to be paid in cash are $22,900.
• The Monthly depreciation is $21,000.

• The company has a desired ending cash balance of at least $35,000. It has an available line-of-credit for borrowing, if necessary, at 12% interest per annum.
• Assume that after the company acquired land and paid dividends in November, such that the beginning cash balance in December is $45,000

a) Prepare a Schedule of Expected Cash Collections for December

b) Prepare a Merchandise Purchases Budget for Decmber

c)Prepare a schedule of disbursments for merchandise in december

d) prepare a cash budget for december

e)prepare a budgeted income statement (before taxes) for december