Question: You have the following information about a restaurant in Year 0007:
![2134_COS.png](https://secure.tutorsglobe.com/CMSImages/2134_COS.png)
¦ Actual sales revenue in November was $80,000.
¦ Actual purchases (cost of sales) in November was $30,000.
Sales revenue will be 40% cash. Credit card sales revenue is 60% of sales, of which 96% is collected in the month of sales; the remaining 4% is collected early in the following month. Purchases of inventory, 20% is paid in the month of purchase and the remaing 80% is paid in the month following the purchases. The condensed budgeted income statement for December, Year 0007, follows:
The wages and operating expenses included in the budgeted income statement will be paid in December, Year 0007. Rent was prepaid in January for the entire year. Prepare a cash budget for the month of December, Year 0007. November ending cash is $4,800.