Sales for Studley Corp are as follows: August 175,000, September 195,000, October 225,000, November $400,000, and December $525,000. Cash sales are 40% and Credit 60%. They collect 30% in the month of the sale, 60% in the month following the sale and the remaining 10% 2 months following the sale.

Studley purchases their raw materials in the month of the sale and pays for them the next month They are equal to 65% of sales.

Other expenditures are $25,000 a month for rent, other expenses of $50,000 per month. The company plans a capital expenditure in November of $100,000. They plan to partially finance this with a bank loan of $15,000. Quarterly tax payments are made starting in October for $20,000. Prepare a cash budget for October through December with a beginning cash balance of $8,500.