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.

Required:

A).Calculate the anticipated cash receipts from sales in December.(7 Marks)

B).Calculate the anticipated total cash available in December.(2 Marks)

C).Calculate the December cash payments for purchases.(5 Marks)

D).Calculate the anticipated ending cash balance on December 31, 2021.(4 Marks)

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