On December 1, 2015, the Basma Wholesale Company is attempting to project cash receipts and disbursements through January 31, 2016. On January 31, 2016 a note will be payable in the amount of $120,000. This amount was borrowed in September to carry the company through the seasonal peak in November and December The following information is available as of December 1: Cash $ 12,000 Accounts receivable 317,040 Inventory 105,000 Accounts payable 110,400 Sales terms are 2/10 net 30. Experience has shown that 70% of the billings will be collected with the discount period, 20% by the end of the month after purchase, and 10% in the following month. There are no cash sales. The average selling price of the company's products is $120 per unit. Actual and projected sales are as follows: October actual $ 216,000 November actual 300,000 December estimated 360,000 January estimated 180,000 February estimated 144.000 October actual $ 216,000 November actual 300,000 December estimated 360,000 January estimated 180,000 February estimated 144,000 Total estimated for year ended June 30, 2016 $1,800,000 All purchases are payable within 15 days. Thus, approximately 50% of the purchases in a month are due and payable in the next month. The average unit purchase cost is $84. Target ending inventories are 500 units plus 25% of the next month's unit sales. Total budgeted marketing, distribution and customer service costs for the year are $480,000. Of this amount. $180,000 is considered fixed (and includes depreciation of $36,000). The remainder varies with sales. Both fixed and variable marketing, distribution, and customer service costs are paid as incurred. Required: a. Prepare a cash budget for December and January. Supply supporting schedules for collections of receivables, payments of merchandise, marketing, distribution and customer service costs. b. Will there be enough cash available on January 31, 2016 to repay the $120,000