In September, TEE Company, a merchandising firm that sells one product, assembled the following information and estimates to prepare a budget for October. Expected sales are 42,000 units at a price of $60 per unit. The cost of merchandise purchases is expected to be $26 per unit. Selling and administrative expenses are estimated at $325,000 of which $28,000 is depreciation. The October 1 cash balance is expected to be $45,000. TEE estimates that 60% of each month's sales are collected in the month of sale and the remaining 40% is collected in the month after sale. Expected sales for September are $920,000. The company pays for 20% of its merchandise purchases during the month of purchase, and pays the remaining 60% during the month following purchase. Merchandise purchases for September are estimated to be $736,000 and the purchase cost per unit is $26. All other out of pocket expenses are paid for in cash