Rexdale Auto Parts Company developed the following data for the preparation December 2022 budget:

Expected Beginning Cash balance December 1: $12,300

Expected total sales in December: $120,000. Sales are 25% cash and 75% on account. Credit sales are collected as follows:

30 percent in the month of sale, 60 percent in the following month, and 10 percent in the second month following the sale.

Actual credit sales for the previous months were:

November, $60,000

October, $50,000 and

September $40,000

The expected purchase of inventory for December is $45,000. Actual purchases were

November $34,000,

October $32,000 and

September is $40,000.

20% of the purchases are paid in the month of purchase, 70% in the following month, and the remainder in the second month following purchases.

December salaries are $28,400, utilities are $1,900, and selling and administrative expenses will be $47,000 of which depreciation on the building is $4,000.