On 1 December 2022, Tire-Lire, SNC, is attempting to project cash receipts and disbursements to 31 January 2023. On this latter date, a note will be payable in the amount of €100 000. This amount was borrowed in September to carry the company through the seasonal peak in November and December.

The trial balance on 1 December shows in part the following information:

Sales terms call for a 2% discount if payment is made within the first 10 days of the month after purchase, with the balance due by the end of the month after purchase. Experience has shown that 70% of the billings will be collected within the discount period, 20% by the end of the month after purchase, 8% in the following month, and that 2% will be uncollectable. There are no cashsales.
The average selling price of the company’s products is €100 per unit. Actual and projected sales are

All purchases are payable within 15 days. Thus approximately 50% of the purchases in a month are due and payable in the next month. The average unit purchase cost is €70. Target closing stocks are 500 units plus 25% of the next month’s unit sales. Total budgeted marketing, distribution and customer-service costs for the year are €400 000. Of this amount, €150 000 is considered fixed (and includes depreciation of €30 000). The remainder varies with sales. Both fixed and variable marketing, distribution and customer-service costs are paid as incurred.
Required

Prepare a cash budget for December and January. Supply supporting schedules for collections of receivables for raw materials, and marketing, distribution and customer-service costs.

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Cash 10 000 Debtors 280 000 Allowance for bad debts 15 800 Stock 87 500 Creditors 92.000