Safe@Work Pty Ltd a wholesaler of work safety products is in the process of preparing a cash budget for December 2021. The following sales and purchases data have been compiled for the preparation of the budget:

	September	October	November	December
	$	$	$	$
Sales	1,010,000	1,020,000	1,080,000	1,000,000
Purchases	560,000	480,000	540,000	500,000

Additional Information

All sales are on credit. The company collects 70% in the month of sale, 20% in the month following the sale and 10% two months following the sale.

30% of all purchases are paid for in the following month they are purchased, with the remaining 70% paid for two months following the purchases.

Warehouse equipment costing $134,000 is expected to be acquired and paid for in December.

The company will repay the whole amount of its short-term loan $124,000 in December.

The selling and distribution expenses are $97,000 each month. Administrative expenses are $112,000 per month, included $13,000 of assets depreciation expense. Expenses are paid in the month they are incurred.

The cash balance on 1^st December 2021 is $17,000.

Required:

Prepare a cash budget for the month of December 2021.

Safe@Work Pty Ltd is considering changing its depreciation method from straight-line to reducing balance. What will be the effect of any increased depreciation expense on the cash balance