On December1, 2014 Wholesale Co. is attempting to project cash receipts and disbursements through January31, 2015 On this laterdate, a note will be payable in the amount of $110,000. This amount was borrowed in September to carry the company through the seasonal peak in November and December.All purchases are payable within 15 days. Approximately 60% of the purchases in a month are paid that month and the rest the following month. The average unit purchase cost is $160

Target ending inventories are 600 units plus 20% of the nextmonth's unit sales.

Selected general ledger balances on December 1 are as follows:

Cash $110,000

Inventory 142,400

Accounts payable $79,000

Sales terms call for a 3% discount if payment is made within the first 10 days after thesale, with the balance due by the end of the month after sale. Experience has shown that 60% of the billings will be collected within the discount period in the month of thepurchase, 20% by the end of the month afterpurchase, and 10% in the following month. The remaining 10% will be uncollectible. There are no cash sales.

The average selling price of thecompany's products is $ 200 per unit. Actual and projected sales are asfollows:

October actual $290,000

November actual 800,000

December estimated 720,000

January estimated 780,000

February estimated 520,000

Total estimated for year ending June 30, 2015 $1,656,250

Total budgetedmarketing, distribution, andcustomer-service costs for the year are $700,000. Of thisamount, $170,000 are considered fixed(and include depreciation of $54,800). The remainder varies with sales. Both fixed and variablemarketing, distribution, andcustomer-service costs are paid as incurred.

Find a cash budget for December 2014 and January 2015. Supply supporting schedules for collections ofreceivables; payments formerchandise; andmarketing, distribution, andcustomer-service costs.