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CoursHeroTranscribedText: PROBLEM 4 Cash Budget You have been asked to prepare a December cash budget for Senjaya Corporation, a distributor of sport equipment. The following information is available about the company's operations: a. The cash balance 011 Dec 1 is $40000 b. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales S 65,000 $ 70,000 5 83,000 Sales on account" S 400,000 $ 525,000 5 600,000 *Sales on account are collected over a 3-months period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in 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 the purchase. The accounts payable remaining from November's inventory purchases total $161,000, all of which will be paid in December. (1. 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 totalling $9,000 will be paid during the month. f. The company maintains 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 (in multiples of $1,000). Assume that any interest will not be paid until the following month. Required: 1. Prepare a schedule of expected cash collection from sales for December. 2. Prepare a schedule of expected cash disbursements for merchandise purchases for December. U.) Prepare a cash budget for December. Indicate in the nancing section any borrowing that will be needed during the month

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