Here are the relevant estimates for the budget preparation of Marvel Corporation for the fourth quarter of 2022:

1 Explain the role of cash budget.

2 Using the above information, complete the following cash budget. Assume that all credit purchases are paid one month after the purchase.

\begin{tabular}{lccc} & October & November & December \\ \hline Credit sales & 1428896 & 1661520 & 1227856 \\ Credit purchases & 857338 & 996979 & 736714 \\ Cash disbursements: & & & 377608 \\ Wages, taxes, and expenses & 390432 & 443094 & 33488 \\ Interest & 33488 & 33488 & 107856 \\ Equipment & 0 & 177968 & \\ Credit sales collections: & 36% & \\ Collected in month of sale & 62% & \\ Collected month after sale & 2% & \\ Never collected & 1271222 & & \\ September credit sales & 762733 & & \\ September credit purchases & 574653 & & \\ Beginning cash balance & & & \end{tabular}