Alnoor Spa and saloon Saloons prepares monthly cash budgets.

Relevant data from

operating budgets for 2012 are:
Sales Data:
October November December
Cash Sales Amount ($) $80,000 $120,000 $175,000
Credit Sales Amount ($) $130,000 $240,000 $300,000

 Credit Collections are expected to be 40% in the month of sale, 60% in the
month following the sale.

Purchase Data:
October November December
Purchases Amount ($) $195,000 $160,000 $160,000

 Sixty percent (60%) of inventory purchases are paid in cash in the month of purchase,
and the 40 % balance due is paid in the month following the purchase.

Operating Expense Data:

October November December
Operating Expenses 190000 190000 190000

Other Data:
 All other expenses above are paid in the month.
 All borrowings are made in the beginning of the month and all repayments made at
the end of the month.

 The company's cash balance on Nov 1, 2011, is expected to be $50,000.The

Company wants to maintain a minimum cash balance of $50,000. Interest on
Borrowing is 12% for an year.

Required:

Prepare a Cash budget for 2 months of November & December, 2011.