Monthly Cash BudgetGrove, Inc. is a wholesaler for its only product, deluxe wireless electric drills, which sell for $$88$ each and cost Grove $$53$ each. On December $1,$ Grove's management requested a cash budget for December. The following selected account balances at November $30,$ were gathered by the accounting department:Cash$$135,000$Marketable securities $($at cost$)210,000$Accounts receivable $($all trade$)1,710,000$Inventories $(15,000$ units$)795,000$Operating expenses payable$140,400$Accounts payable $($all merchandise$)583,200$Note payable $($due $12/31)393,000$Actual sales for the months of October and November were $20,000$ and $30,000$ units, respectively. Projected unit sales for December and January are $50,000$ and $40,000,$ respectively. Experience indicates that $50\%$ of sales should be collected in the month of sale, $30\%$ in the month following sale, and the balance in the second month following sale. Uncollectible accounts, returns, and allowances are negligible.Planned purchases should provide ending inventories equal to $30\%$ of next month's unit sales volume. Approximately $70\%$ of the purchases are paid for in the month of purchase and the balance in the following month.Monthly operating expenses are budgeted at $$7\mathrm{.}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 $$22,500$ cash dividend to be paid $2$ weeks after the December $20$ date of record$\mathrm{.}2.$ Sale of one$-$half of the marketable securities held on November $30$ a gain of $$21,000$ is anticipated$\mathrm{.}3.$ Pay off the note payable due December $31\mathrm{.}4.$ Trade$-$in of an old computer originally costing $$675,000$ and now having accumulated depreciation of $$540,000$ at a gain of $$157,500$ on a new computer costing $$1,380,000.$ Sufficient cash will be paid at the time of trade$-$in so that only $50\%$ of the total price will have to be financed$\mathrm{.}5.$ Grove's 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.$Prepare a cash budget for Grove, Inc., for December.Collections in December from customers:From October salesFrom November salesFrom December salesTotal collectionsPayments on account for merchandise purchases:NovemberDecemberUnit SalesEnding inventoriesTotal units to be availableBeginning inventoriesUnits to be purchasedTotal dollar purchasesPortion paid in DecemberPayment of operating expenses:NovemberDecemberTotal variable operating expensesFixed operating expensesTotal operating expensesMonthly depreciationOperating expenses requiring paymentAmounts to be paid in DecemberCash required at time of computer purchase:Cost of new computerBook value of old computerGain on trade$-$inTotal trade$-$in allowanceBalance owing at trade$-$inPortion to be financedCash payment requiredGrove, Inc.Cash BudgetFor the Month Ended December $31$Beginning cash balanceCash receipts:Collections from customers $($calculated above$)$Short$-$term borrowingCash availableCash disbursements:Payments on accounts payable $($calculated above$)$Payments of operating expenses payable $($calculated above$)$Down payment on computer $($calculated above$)$Total cash disbursementsEnding cash balance