On September 30, the Parker Corporation had a balance of $50,500 in its cash account. Additional information: Actual sales: August $180,000 September 200,000 Budgeted sales: October $195,000 November 210,000 10% of each months sales are cash sales. Of the remaining credit sales, collections are 70% in the month of the sale and 25% in the following month. The remaining 5% is uncollectible. Inventory costs average 75% of sales (i.e., October sales will require $146,500 of inventory and November sales will require $157,500 of inventory). Monthly purchases of inventory are budgeted at 100% of next month's projected inventory needs. Thirty percent of the purchases are paid for in the month of purchase, with the remaining 70% paid in the month following purchase. Inventory purchases in September totaled $117,000. Selling and administrative expenses are $50,000 per month. Of this amount, $12,000 is depreciation. The company plans to purchase a new piece of production equipment costing $40,000 at the end of October. All obligations, except inventory purchases, are paid in the month incurred. Parker desires a minimum cash balance of $50,000. Short-term borrowing in increments of $1,000 is available to cover any shortfalls. Borrowings are made at the beginning of the month and repayments are at the end of the month. Interest is 18% per year, and interest payments must be made whenever there is a principal repayment. Dividends of $10,000 were declared in September and will be paid in October.

October Beginning Cash Balance... Collections from Sales Total Cash Available........ Less Disbursements: Inventory Purchases.. Selling & Administrative Expenses .... Income Taxes Paid. Equipment (Sales) Purchases. Dividends Paid. Total Cash Disbursements. ......... Excess (Inadequacy) of Cash... Minimum Cash Balance.... Cash Available (Needed) Financing: Borrowing.. Repayments......... Interest... Total Financing.... Ending Cash Balance