October	November	December
Sales	$110,000	$130,000	$166,500
Merchandise Purchase	$85,000	$97,500	$105,000
Selling and Admin Expenses	$51,000	$55,000	$59,000

Cash Budget: All sales are on credit and are collected 40% in the month of sale, 58% in the month following the sale, with 2% uncollectible (still due). Merchandise purchases are paid in full the month following the month of purchase. The monthly selling and administrative expenses include $9,000 of depreciation expense relating to display fixtures and warehouse equipment. All selling and administrative costs are paid in cash in the month incurred. Management requires a minimum cash balance of $10,000. Any amount below this will be borrowed, using a bank credit line, but all bank borrowings must be in whole increments of $1,000. All borrowings are made at month end. No interest charges.

A. Prepare a Cash Budget for November showing all details. The company expects to have $11,000 on hand November 1st.

B. What would the Accounts Payable balance (relating to purchases) at 11/30 (the end of November)?

C. When preparing a budgeted ending December 31st Balance Sheet, what would be the Accounts Receivable ending balance? Assume no uncollectible accounts at September 30th Balance Sheet date.