You are assisting a friend who owns a small business and has asked you to prepare a cash budget for the month of December.

At 1st December there was $1,253 in the bank account and budgeted figures for December are:

	$
Sales	3,850
Cost of goods sold	1,030
Purchases	1,500
Wages	750
Depreciation expense	525
Rent expense	175

Additional information:

80% of all sales are collected in the month of sale and 20% in the month following the sale.

Sales in November were $3,240.

Purchases are paid 65% in the month of purchase and 35% in the month following the purchase.

Purchases for November were $4,160.

Rent of $350 will be paid for 2 months in advance in December to cover December ($175) and January ($175) rent.

All other expenses are paid for in cash.

The business is planning a small extension to their store for later in the year. A deposit of $1,195 is payable to the builder in December.

Required:

Prepare the cash budget for December, based on the information above.

Cash Receipts
Less: Cash Payments
Increase/(Decrease) in cash
Cash Balance at Start of December	1,253
Cash Balance at End of December