Cash Budgets

Sales for Oct, Nov and Dec are expected to be R200 000, R180 000 and R220 000, respectively for Ripken Company. All sales are on account (terms 2/15, net 30 days) and are collected 50% in the month of sales and 50% in the following month. One half of all sales discounts are taken on the average. Materials are purchased one month before being needed and, all purchases and expenses are paid for as incurred. Activities for the quarter are expected to be:

Oct Nov Dec

Materials used 40 000 36 000 44 000

Salaries 70 000 68 000 72 000

Maintenance and repairs 18 000 18 000 18 000

Depreciation 36 000 36 000 36 000

Utilities and other 14 000 14 000 14 000

Dividends paid 0 10 000 0

Payments on Bonds 8000 8 000 8 000

Required: Given the information prepare a cash budget for November.