Question:

Hauser Inc. has requested a cash budget for December.

The following information was provided:

1. Cash balance on December 1 is $2,300.
2. Actual sales for October, November, and December are as follows:

	October	November	December
Cash sales	$12,000	$14,000	$18,000
Credit sales	26,000	30,000	32,000
Total Sales	$38,000	$44,000	$50,000

3. Credit sales are collected as follows: 40 percent in the month of sale, 40 percent in the second month, and 10 percent in the third month. The remaining sales are uncollectible.
4. Inventory purchases are 68 percent of total monthly sales. Purchases are paid 55 percent in the month of purchase and the remaining 45 percent are paid in the following month.
5. Operating expenses for the month are $7,200, including $1,000 for depreciation.
6. Monthly salaries and owner's withdrawals $3,400.
7. Monthly rent $2,100.

Required:

Prepare a cash collections and cash payment schedule as well as a cash budget for the month of December.

Total cash sales and collections on account for the month are $____________.

Total cash available for the month is $_______________.

Payments for purchases during the month are $______________.

Payments for other expenses during the month are $___________ .

The ending cash balance for the month is $__________________.