For revision purpose

R A Chad Associates, a manufacturing company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in the preparation of the master budget for the final quarter.

(a). As of September 30, 2005, the company's balance sheet showed the following account balances:

Cash	$18,000
Accounts receivables	96,000
Inventory	25,200
Building & equipment (net)	428,200
Accounts payable		36,600
Capital		380,000
Retained earnings		150,800
	567,400	567,400

(b). Actual sales for September and budgeted sales for the final quarter are as follows:

September (actual)	120,000
October	140,000
November	170,000
December	180,000
January	100,000

(c). Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following

the sale. The accounts receivable at September 30 are as a result of September credit sales.

(d). The company's gross profit rate is 40% of sales. The cost of goods sold is 60% of sales.

(e). Monthly expenses are budgeted as follows: salaries and wages $15,000 per month, shipping 6% of sales,

advertising $12,000 per month, other expenses 4% of sales, depreciation of equipment will be $12,000 for the

quarter.

(f). At the end of each month, inventory is to be on hand equal 30% of the following month's cost of goods sold.

(g). Half of the month's inventory purchases are paid for in the month of purchase and half in the following month.

(h). Equipment purchases during the quarter will be as follows: October $23,000 and November $6,000.

Dividends totaling $6,000 will be paid in December.

Required:

Prepare the cash budget along with the supporting schedules necessary for the quarter ending December 31, 2005