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 $$220,000$ for December $201$ and $$200,000$ for January $202.$

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 $80$ percent of the merchandise 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 $30,20$x$1,$ is as follows:

HANDY HARDWARE, INC.

Balance Sheet

November $30,201$

Assets

Required:

Compute the budgeted cash collections for December $201.$

Compute the budgeted income $($loss$)$ before income taxes for December $20\backslash$times $1.$

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