Exercise 9-29 Budgeted Financial Statements; Retailer ( LO 9-3, 9-5) Handy Hardware is a retail hardware store. Information about the store's operations follows. - November 201 sales amounted to $200,000. - Sales are budgeted at $220.000 for December 20x and $200,000 for January 20x2. - 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 uneollectible. Bad debts expense is recognized monthly. - The store's gross margin is 25 percent of its sales revenue. - A total of 80 percent of the merehandise for resale is purchased in the month prior to the month of sale, and 20 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 $22,600. - Annual depreciation is $216,000. The company's balance sheet as of November 30,20x1, is as follows: HANDY HARDWARE, INC. Balance Sheet November 30, 20x1 HANDY HARDWARE, INC. Balance Sheet November 30,20x1 Assets Cash $22,000 Accounts recelvable (net of $3.500 allowance for uncollectible accounts) 76.000 Inventory 140.000 Property, plant, and equipment (net of $590,000 accumulated depreciation) 862,000 Total assets $1,100,000 Llabilities and Stockholders' Equity \begin{tabular}{lr} Accounts payable & $162,000 \\ Common stock & 795.000 \\ Retained eamings & 143.000 \\ Total liabilities and stockholders' equity & $1,100.000 \\ \hline \end{tabular} Required: Compute the following amounts. 1. The budgeted cash collections for December 20x. 2. The budgeted income (loss) before income taxes for December 20x. 3. The projected balance in accounts payable on December 31. 20x