Budgeted Sales:

September	October	November	December	January
280,000	300,000	320,000	360,000	200,000

Planning Assumptions: 25% of all Sales are cash. Accounts receivable are collected 60% in the month of sale, 30% in the next month, and with the final 10% in the third month. Cost of Goods sold is 40% of sales. Inventory is purchased in the month prior to the sale, 70% is paid in the month of acquisition and 30% is paid the next month. Operating Expenses:

Salaries	60,000
Depreciation	10,000
Rent	20,000
Utilities	6,000
Other	5,000

Commissions 2% of prior month's sales. Supplies 1% current month Cost of Goods sold.

part a)What is the budgeted balance for Accounts Payable at 12/31 for Inventory purchases?

part b)What is the budgeted amount of Operating Expenses for December?