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The sales forecasts from the previous page has been reproduced below: Sept Oct Nov Dec Jan Sales Rev. $80,000 $100,000 $120,000 $90,000 $110,000 20% sales are cash sales. Approximately 10% of credit sales are never collected. The collectible portion of credit sales are collected as follows: 70% in the month of the sale 30% in the month following the sale Data 0.1 0.7 0.3 All direct material purchases are on account. Dixon pays in full for on account purchases during the following month (see purchases budget from previous page). Fixed administrative expenses are $ 7,000 per month (half is paid in the current month, and the other haft in the following month) 7000 All other cash payments are paid during the month incurred, as follows: Direct Labor costs $3 per unit produced 3 Fixed manufacturing overhead $27,000 (including $15,000 in depreciation) 27000 15000 Sales commissions 12% of sales revenue 0.12 The company will borrow any funds necessary to maintain a minimum cash balance of $20,000. If the firm develops cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage.

Part 3. In the space provided below, complete Dixons cash budget for the month of October and indicate how much (if any) financing is required.
Beginning Cash (9/30)	40,000
Cash Collections:
Cash Payments:
Preliminary Cash Balance
Financing Required
Ending Cash Balance

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