Question 3 (30 marks): SG Ltd. has the following information:

1. The cash balance on December 1, 2021 is 40,000
2. Actual sales for October, November 2021, and expected sales for December are:

	Oct. 2021	Nov. 2021	Dec. 2021
Credit sales	400,000	500,000	600,000

3. Of the credit sales, 30% are collected in the month of sales, 40% are collected in after 1 month, 25% are collected after 2 months; 5% of credit sales are uncollectible.
4. Purchases of inventory will total 350,000 for December 2021. 80% of a months inventory purchases are paid during the month of purchase.
5. Selling and administrative expenses to be paid at 100,000 for December 2021.
6. A new car for the Board of Directors of 80,000 will be purchased for cash during December 2021, and dividends totaling 40,000 will be paid during the month
7. Required: Calculate estimated cash receipts, cash payments, ending balance for December 2021. Should SG Ltd. be able to maintain its minimum balance of cash of 35,000? If not, recommend ways to maintain the minimum cash balance for SG Ltd?