Village Hardware is a retail hardware store. Information about the store's operations follows. November 20x4 sales amounted to $500,000. Sales are budgeted at $540,000 for December 20x4 and $500,000 for January 20x5 Collections are expected to be 60 percent in the month of sale and 38 percent in the month following the sale. Two percent of sales are expected to be uncollectible. Bad debts expense is recognized monthly. The store's gross margin is 20 percent of its sales revenue .A total of 80 percent of the merchandise for resale is purchased in the month prior to the month of sale, and 20 percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase. Other monthly expenses paid in cash amount to $46,200 Annual depreciation is S462,000. The company's balance sheet as of November 30, 20x4, is as follows: VILLAGE HARDWARE, INC BALANCE SHEET NOVEMBER 30, 20x4 ASSETS Cash Accounts receivable (net of $8,000 allowance for uncollectible accounts) Inventory Property, plant, and equipment (net of S1,280,000 a $ 54,000 162,000 380,000 1,824,000 depreciation) Total assets $2,420,000 LIABILITIES AND OWNER'S EQUITY Accounts payable Common stock S 425,600 1,690,000 304,400 Retained earnings Total liabilities and owner's equity $2,420,000 Required 1. Compute the budgeted cash collections for December 20x4 cash 2. Compute the budgeted income (loss) before income taxes for December 20x4 3. Compute the projected balance in accounts payable on December 31, 20x4