The following information pertains to Amigo Corporation:

Month Sales Purchases

September 38,000 14,000

October 42,000 16,000

November 48,000 18,000

December 60,000 20,000

Cash is collected from customers in the following manner: Month of sale (2% cash discount) 30% Month following sale 50%

Two months following sale 15% .Amount uncollectible 5%

40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month. Other expenses to be paid in December include Utilities of $6,000 and Salaries of $20,000. Depreciation expense for the month is $12,000.

Prepare a cash budget for December