Cash Budget

Hyperion, Inc. 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 $$102,250,$ including interest. The cash balance on November $1$ is $$37,200.$ Accounts payable to merchandise creditors at the end of October were $$216,000.$ The company's experience indicates that $70$ percent of sales will be collected during the month of sale, $25$ percent in the month following the sale, and $3$ percent in the second month following the sale; $2$ percent will be uncollectible. The company sells various products at an average price of $$10$ per unit. Selected sales figures are as follows:

$\backslash$table$[[$September$,$actual,$50\mathrm{.}000$ units$],[$October$,$actual,$70\mathrm{.}000$ units$],[$November forecast,$90\mathrm{.}000$ units,$],[$December forecast,$60\mathrm{.}000$ units,$],[$Total forecast for year$-$end:,$900\mathrm{.}000$ units,$]]$

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 $$6$ per unit. Inventories at the end of each month are maintained at a level of $2,000$ units plus $10$ percent of the number of units that will be sold in the following month. The inventory on October $1$ amounted to $9,000$ units. Budgeted operating expenses for November are $$225,000.$ Of this amount, $$100,000$ is considered fixed $($including depreciation of $$40,000).$ 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 $$9,000$ cash.

Instructions

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.

$($Show all computations.$)|$