The cash balance on December 1 is $40,000

2. Actual sales for October and November and expected sales for December are as follows:

	October	November	December
Cash sales	$65,000	$70,000	$83,000
Credit sales	400,000	525,000	600,000

Sales on account are collected over a three-month period at the following rate: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible.

3. Purchases of inventory will total $280,000 for December. 30% of a months inventory purchases are paid in the month of purchase and 70% are paid in the month following purchase. The accounts payable at Nov 30 total $161,000.

4. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount, $50,000 is for depreciation.

5. A new web server for the Marketing Department costing $76,000 will be purchased for cash during December, and dividends totaling $9,000 will be paid during the month.

6. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the companys bank.

prepare a cash budget