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CASH BUDGET $(5$ questions @ $2\mathrm{.}5$ points$)$

The following data and information are provided to prepare a cash budget for November$-$December $2022$:

$1.$ Budgeted sales for the last $2$ months of $2022$ are $$156,600($November$)$ and $$180,000($December$).$

$2.$ All sales are credit sales. The company expects to collect $70\%$ of credit sales in the month of the sale and $30\%$ in the month after the

sale.

$3.$ All necessary merchandise inventories are purchased on account. Purchases are paid $85\%$ in the month of the purchase and $15\%$ in the following month. Purchases for November$-$December $2022$ are estimated to be $$108,000($November$)$

and $$121,000($December$).$

$4.$ Selling and administrative expenses for November and December are $$12,000$ and $$15,000,$ respectively, excluding monthly depreciation expense $$1,000.$

$5.$ Equipment will be purchased in December $2022$ for $$42,000.$

$6.$ $$35,000$ bonus will be distributed to shareholders in December $2022.$

$7.$ Cash balance on November $1$st was $$8,200.$

$8.$ The company has a policy to maintain a minimum cash balance of $$5,000.$ If necessary, the company will borrow to meet its

short$-$term needs. All borrowing is done at the beginning of the month and all payments on principal and interest are made at

the end of the next month. The annual interest rate is $9\%.$ The company must borrow in multiples of $$1,000.9.$ October sales were $$140,400$ and merchandise inventory purchased equal $$101,000.$

Prepare the cash budget for November$-$December $2022$

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