Potter Corporation sells office supplies to government agencies. At the beginning of the current quarter, the company reports the following selected account balances: Current quarter account balances: Cash 10,000 Accounts Receivables 200,000 Current Payable 85,000 Potter's management has made the following budget estimates regarding operations for the current quarter: Sales (estimated) 500,000 Total cost and expenses (estimated) 400,000 (see breakdown below) Debt service payment (estimated) 145,000 Tax liability payment (estimated) 45,000 Of Potter's total costs and expenses, $30,000 is quarterly depreciation expense, and $20,000 represents the expiration of prepayments. The remaining $350,000 is to be financed with current payable. The company's ending prepayments balance is expected to be the same as its beginning prepayments balance. Its ending current payable balance is expected to be $20,000 more than its beginning balance. All of Potter's sales are on account. Approximately 65 percent of its sales are collected in the quarter in which they are made. The remaining 35 percent are collected in the following quarter. Because all of the company's sales are made to government agencies, it experiences virtually no uncollectible accounts. Potter's minimum cash balance requirement is $10,000. Should the balance fall below this amount, management negotiates a short-term loan with a local bank. The company's debt ratio (liabilities / assets) is currently 80 percent.

Instructions: Prepare cash budget for the month of November, supported by schedules of cash collections on account receivable and cash payments for purchases of merchandise.