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Budgeting for Galvin Manufacturing Galvin Manufacturing needs to prepare a cash budget for December 2020. The cash balance at the beginning of December is $9,000. The actual sales for October and November and expected sales for December are: Information October (8) 11 November (8) December (9) Cash Sales 13,000 310.500 14,800 Sales on Account 40,000 60,000 80.000 Total Sales 53,000 70,500 98,800 Sales on account are collected over a three-month period in the following ratio: 10% in the month of sale, 70% in the month following sale 18% in the second month following sale 2% remaining are uncollectible. Additional information includes: (a) Purchases of inventory will total $50,000 for December; 20% will be paid for in December Accounts payable from November's inventory purchases is $32,000, all of which will be paid in December (b) Selling and administrative expenses are budgeted at $26,000 for December; of which $8,000 is for depreciation C) Equipment costing $36,000 will be purchased for cash during December, and other miscellaneous cash expenses of $6,000 will be paid during December. Required Prepare the cash collections for the month of December and also a Cash Budget for December. I Show all workings clearly (50 marks)

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