Rounding/Entry Rules:

Round your numerical answers to the nearest DOLLAR.

Do not enter $ or , when entering amounts.

If asked to enter a word or letter, be sure you check the spelling.

Question:

Jasmine Company provided the following sales information for the month of December:

	November Actual	December Budget
Cash sales	$ 20,500.00	$ 40,000.00
Credit sales	100,000.00	130,000.00
Total sales	$120,500.00	$170,000.00

For credit sales, the collection pattern is as follows:

Month of sales	70%
Month following sales	25%

Based on past experience, the company estimates the remaining credit sales are uncollectible.

Inventory purchases average 75% of current month's total sales.

Payments for inventory are made as follows:

Month of purchase	60%
Month following purchase	40%

Other expenses are as follows:

Wages and benefits per month	$ 12,500.00
Rent and Utilities per month	$ 5,800.00
Gift baskets and ribbons	$ 1,200.00
Tax payment per quarter to be paid in December	$ 1,500.00
Depreciation expenses per month	$ 1,000.00

December 1 cash balance is $4,580.00.

Required:

Prepare a cash budget for the month of December and use it to answer the following questions.

Cash sales and collections on account for the month are $_____________.

Payments for inventory for the month are $________________.

Payments for all other expenses for the month are $______________.

The ending cash balance at the end of the month is $____________.