Monthly Cash Budget Grove, Inc. is a wholesaler for its only product, deluxe wireless electric drills, which sell for $90 each and cost Grove $54 each. On December 1, 2016, Groves management requested a cash budget for December. The following selected account balances at November 30, 2016, were gathered by the accounting department:

Cash				$135,000
Marketable securities (at cost)				210,000
Accounts receivable (all trade)				1,710,000
Inventories (15,000 units)				810,000
Operating expenses payable				140,400
Accounts payable (all merchandise)				583,200
Note payable (due 12/31/2016)				393,000

Actual sales for the months of October and November were 20,000 and 30,000 units, respectively. Projected unit sales for December and January are 50,000 and 40,000, respectively. Experience indicates that 50% of sales should be collected in the month of sale, 30% in the month following sale, and the balance in the second month following sale. Uncollectible accounts, returns, and allowances are negligible.

Planned purchases should provide ending inventories equal to 30% of next months unit sales volume. Approximately 70% of the purchases are paid for in the month of purchase and the balance in the following month.

Monthly operating expenses are budgeted at $8.10 per unit sold plus a fixed amount of $189,000 including depreciation of $81,000. Except for depreciation, 60% of operating expenses are paid in the month incurred and the balance in the following month. Interest expense is included in operating expenses.

Special anticipated year-end transactions include the following: 1. Declaration of a $22,500 cash dividend to be paid 2 weeks after the December 20 date of record. 2. Sale of one-half of the marketable securities held on November 30; a gain of $21,000 is anticipated. 3. Pay off the note payable due December 31, 2016. 4. Trade-in of an old computer originally costing $675,000 and now having accumulated depreciation of $540,000 at a gain of $157,500 on a new computer costing $1,350,000. Sufficient cash will be paid at the time of trade-in so that only 50% of the total price will have to be financed. 5. Groves treasurer has a policy of maintaining a minimum month-end cash balance of $135,000 but wants to raise this to $225,000 at December 31. She has a standing arrangement with the bank to borrow any amount up to a limit of $450,000.

Prepare a cash budget for Grove, Inc., for December 2016.

Collections in December from customers: