Handy Hardware is a retall hardware store. Information about the store's operations follows.

$15$

points

$01$:$49$:$28$

References

November $201$ sales amounted to $$490,000.$

Sales are budgeted at $$530,000$ for December $201$ and $$490,000$ for January $202.$

Collections are expected to be $70$ percent in the month of sale and $28$ 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 $20$ 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 pald in cash amount to $$46,100.$

Annual depreciation is $$459,000.$

The company's balance sheet as of November $30,201,$ 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 $20$x$1.$

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