Question - Gilbert Ortega operates a small boutique in Scottsdale, Arizona that sells Kachina dolls. Gilbert expects to generate revenues of $40,000, $50,000, and $60,000 during October, November, and December, respectively. Gilbert's cost of goods sold average 60 percent of revenues, and his budgeted marketing and administrative costs are $4,000, $6,000, and $5,000 for October, November, and December respectively.

Gilbert expects to receive 70% of his revenues in cash during the month of sale and 30% in the following month. Gilbert receives his dolls on consignment, with the purchase price being due at the time of the sale. Thus, Gilbert's cash outflow for goods sold equals his cost of goods sold. Finally, Gilbert pays for all marketing and administrative expenses in cash as they are incurred.

Prepare Gilbert's cash budget for November and December. Assume that Gilbert expects to have $16,000 in cash on November 1.