Eastside Hardware is a retail hardware store. Information about the store$$s operations follows.

November $20$x$1$ sales amounted to $$540,000.$

Sales are budgeted at $$580,000$ for December $20$x$1$ and $$540,000$ for January $20$x$2.$

Collections are expected to be $60$ percent in the month of sale and $38$ percent in the month following the sale. Two percent of sales are expected to be uncollectible. Bad debts expense is recognized monthly.

The store$$s gross margin is $25$ percent of its sales revenue.

A total of $70$ percent of the merchandise for resale is purchased in the month prior to the month of sale, and $30$ percent is 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 $$46,600.$

Annual depreciation is $$474,000.$

The company$$s balance sheet as of November $30,20$x$1,$ is as follows:

EASTSIDE HARDWARE, Incorporated Balance Sheet November $30,20$x$1$

Assets

Cash $ $58,000$

Accounts receivable $($net of $$8,400$ allowance for uncollectible accounts$)166,000$

Inventory $420,000$

Property, plant, and equipment $($net of $$1,320,000$ accumulated depreciation$)1,864,000$

Total assets $ $2,508,000$

Liabilities and Stockholders$$ Equity

Accounts payable $ $426,000$

Common stock $1,730,000$

Retained earnings $352,000$

Total liabilities and owner$$s equity $ $2,508,000$

Required:

Compute the budgeted cash collections for December $20$x$1.$

Compute the budgeted income $($loss$)$ before income taxes for December $20$x$1.$

Compute the projected balance in accounts payable on December $31,20$x$1.$