Duffy Dog operates a computer training center. The following data relate to the preparation of a master budget for January $2021.$

At the end of $2020,$ the company's general ledger indicated the following balances:

$\backslash$table$[[$Debits$,$Credits$],[$Cash$,$$$,69,000,$Accounts Payable $.,$$$,42,000],[$Accounts receivable,,$45,100,$Note payable,,$62,400],[$Equipment $($net$),,112,000,$Common stock,,$23,000],[,,,$Retained earnings,,$98,700],[$Total$,$$$,226,100,,$$$,226,100]]$

Tuition revenue in December $2020$ was $$82,000,$ and tuition revenue budgeted for January $2021$ is $$110,000.$

$45$ percent of tuition revenue is collected in the month earned, and $55$ percent is collected in the subsequent month. The receivable balance at the end of $2020$ reflects tuition earned in December $2020.$

Monthly expenses $($excluding interest expense$)$ are budgeted as follows: salaries, $$55,000$; rent, $$4,800$; depreciation on equipment, $$8,000$; utilities, $$2,000$; other, $$870.$

Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The $$42,000$ payable at the end of $2020$ represents money owed for the purchase of computer equipment in December $2020.$

The company intends to purchase $$45,000$ of computer equipment in January $2021.$ The anticipated $$8,000$ per month of depreciation $($see number $4)$ reflects the addition of $$2,000$ of monthly depreciation related to this purchase.

The note is at $16$ percent per annum and requires monthly interest payments of $$832.$ The payments are made on the $20$ th of each month. The principal must be paid in February $2022.$

The tax rate is $20$ percent.Duffy Dog operates a computer training center. The following data relate to the preparation of a master budget for January $2021.$

At the end of $2020,$ the company's general ledger indicated the following balances:

$\backslash$table$[[$Debits$,$Credits$],[$Cash$,$$$,69,000,$Accounts Payable $.,$$$,42,000],[$Accounts receivable,,$45,100,$Note payable,,$62,400],[$Equipment $($net$),,112,000,$Common stock,,$23,000],[,,,$Retained earnings,,$98,700],[$Total$,$$$,226,100,,$$$,226,100]]$

Tuition revenue in December $2020$ was $$82,000,$ and tuition revenue budgeted for January $2021$ is $$110,000.$

$45$ percent of tuition revenue is collected in the month earned, and $55$ percent is collected in the subsequent month. The receivable balance at the end of $2020$ reflects tuition earned in December $2020.$

Monthly expenses $($excluding interest expense$)$ are budgeted as follows: salaries, $$55,000$; rent, $$4,800$; depreciation on equipment, $$8,000$; utilities, $$2,000$; other, $$870.$

Expenses are paid in the month incurred. Purchases of equipment are paid in the month after purchase. The $$42,000$ payable at the end of $2020$ represents money owed for the purchase of computer equipment in December $2020.$

The company intends to purchase $$45,000$ of computer equipment in January $2021.$ The anticipated $$8,000$ per month of depreciation $($see number $4)$ reflects the addition of $$2,000$ of monthly depreciation related to this purchase.

The note is at $16$ percent per annum and requires monthly interest payments of $$832.$ The payments are made on the $20$ th of each month. The principal must be paid in February $2022.$

The tax rate is $20$ percent.