Budgeted financial statements: retailer

Everywhere Sports is a retail store supplying sporting equipment to community sports clubs. Information about the store's operations is as follows:

• November sales amounted to $400 000.
• Sales are budgeted at $440 000 for December and $400 000 for January.
• Receipts are expected to be 60 per cent in the month of sale and 38 per cent in the month following the sale. Two per cent of sales receipts are expected to be uncollectable,
• 12 The store's gross margin is 25 per cent of its sales revenue.
• A total of 80 per cent of the merchandise for resale is purchased in the month prior to the month of sale, and 20 per cents purchased in the month of sale. Payment for merchandise is made in the month following the purchase.
• Other monthly expenses paid in cash amount to $45 200.
• Annual depreciation is $432 000.

The balance sheet of Everywhere Sports as of 30 November is:

Assets
Cash	44000
Accounts receivable (net of $7000 allowance for uncollectable accounts)	152000
Inventory	280000
Property, plant and equipment (net of St 180 000 accumulated depreciation)	1724000
Total assets	2200000
Liabilities and shareholders' equity
Accounts payable	324000
(Ondinary shares	1590000
Retained earnings	286000
Total liabilities and shareholders' equity	2200000

Required:

1. Budget cash receipts for December
2. Budget profit or loss before income tax for December
3. Projected balance in accounts payable on 31 December.