Example $2$: Cash Budget Preparation

Question: Whispering Pines, a retail company, is preparing its cash budget for the quarter ending December $31,2021.$ The company expects to make cash sales of $$150,000$ in October, $$180,000$ in November, and $$200,000$ in December. Additionally, $70\%$ of the sales are expected to be collected in the month of sale, $20\%$ in the following month, and the remaining $10\%$ in the second month after the sale. The company's cash outflows for the quarter are anticipated to be $$120,000$ for inventory purchases, $$50,000$ for operating expenses, and $$30,000$ for a loan repayment due in December. What is the expected cash balance at the end of December if the beginning cash balance on October $1,2021,$ was $$40,000?$ Provide a detailed cash budget for the quarter, including all calculations.