PROBLEM 23.3B Barley, Inc., wants a projection of cash receipts and cash payments for the month of November. On Budgeting for Cash 28, a note will be payable in the amount of $102,250, including interest. The cash bal- ance on November 1 is $37,200. Accounts payable to merchandise creditors at the end of October were $206,000. The company's experience indicates that 70 percent of sales will be collected during the month of sale, 25 percent in the month following the sale, and 3 percent in the second month following the sale; 2 percent will be uncollectible. The company sells various products at an average price of $10 per unit. Selected sales figures are as follows: Sept-actual Oct-actual Nov.-estimated Dec.-estimated Total estimated for the current year......_... . ...__.. . Units 50,000 70,000 90,000 60,000 900,000 year--...---...--....-...--....-... Because purchases are payable within 15 days, approximately 50 percent of the purchases in a given month are paid in the followin month. The average cost of units purchased is S6 per unit Inventories at the end of each month are maintained at a level of 2,000 units plus 10 percent of the number of units that will be sold in the following month. The inventory on October 1 amounted to 9,000 units. Budgeted operating expenses for November are $225,000. Of this amount, $100,000 is consid- ered fixed (includin depreciation of $40,000) All operating expenses other than depreciation are paid in the month in which they are incurred. The company expects to sell fully depreciated equipment in November for $9,000 cash. Prepare a cash budget for the month of November, supported by schedules of cash collections on accounts receivable and cash payments for purchases of merchandise