Q. Sales in August and September were $300,000 and $400,000. Sales of $300,000, $250,000, and $200,000 have been forecasted for October, November, and December. 25% of the firm sales are collected in the same month, 55% after 1 month, and the remaining 20% collected after 2 months. The purchases are 70% of sales. Of this amount, 10% is paid in cash, 70% is paid in the month immediately following the month of purchase, and the remaining 20% is paid 2 months following the month of purchase. In December, the firm will receive a $20,000 cash dividend. Monthly rent pmt of $5,000 is to be made. Fixed salary cost for the year is $96,000, or $8,000 per month. In addition, wages are estimated as 10% of monthly sales. Taxes of $25,000 must be paid in December. New machinery costing $130,000 will be purchased and paid for in November. An interest payment of $15,000 is due in December. Cash dividends of $20,000 will be paid in October. A $20,000 principal payment is due in December. At the end of September the cash balance was $50,000. The company wants to maintain a target cash balance of $25,000 at the end of every month. Prepare a monthly cash budget for October till December.