You have been asked to prepare a December Cash budget for Bamboo Extras Ltd, a furniture store in Castries, in order to assess its cash needs. The following information is available about Bamboo's operations: a. The cash balance on December 1st will be $40,000. b. Actual sales for October and November and expected sales for December are as follows: October November December $70,000 $525,000 $83,000 $600,000 Cash Sales $65,000 Sales on Account. $400,000 Sales on account are collected over a three-month period in the following ratio: 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. c. Purchase of inventory will total $280,000 for December. 30% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount $50,000 is for depreciation. e. 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. f. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed.

((((((Please see photos below)))))

You have been asked to prepare a December Cash budget for Bamboo Extras Ltd, a furniture store in Castries, in order to assess its cash needs. The following information is available about Bamboo's operations: a. The cash balance on December 1st will be $40,000. b. Actual sales for October and November and expected sales for December are as follows: Sales on account are collected over a three-month period in the following ratio: 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. c. Purchase of inventory will total $280,000 for December. 30% of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December. d. Selling and administrative expenses are budgeted at $430,000 for December. Of this amount $50,000 is for depreciation e. 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 mnth f. The company must maintain a minimum cash balance of $20,000. An open line of credit is available from the company's bank to bolster the cash position as needed f. The company must maintain a minimum cash balance of $20,000. An open line of credit is a from the company's bank to bolster the cash position as needed. Required: 1. Prepare a schedule of cash collections for December. 2. Prepare a schedule of cash payments for materials during December to suppliers. 3. Prepare a cash budget for December: 1) \begin{tabular}{|l|l|} \hline Schedule of Cash Collections \\ \hline & December \\ \hline Cash Sales for December & \\ \hline Sales on Account (Collected in December) & \\ \hline October \\ \hline November \\ \hline December \\ \hline Total Collections for December \\ \hline \end{tabular} 2) \begin{tabular}{|l|l|} \hline Schedule of Cash Payments \\ \hline & December \\ \hline Accounts payable - November & \\ \hline Cash Payments - December & \\ \hline Total Payments & \\ \hline & \\ \hline \end{tabular} 3) \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ Bamboo Extras Ltd } \\ \hline Cash Budget & December \\ \hline & Deginning Cash Balance \\ \hline Cash Receipts & \\ \hline Collections from customers & \\ \hline Total Cash Available & \\ \hline Cash Payments & \\ \hline Cash Payments for materials & \\ \hline Selling and administration & \\ \hline Web Server Purchase \\ \hline Dividends paid & \\ \hline Total cash payments & \\ \hline Excess/deficiency of cash available over & \\ \hline \end{tabular} Total cash payments Excess/deficiency of cash available over disbursements Borrowing Ending cash balance