1. Atlantic Surf manufactures surfboards. The companys sales budget for the next three months is shown below. In addition, company policy is to maintain finished goods inventory equal (in units) to 40% of the next months unit sales. As of June 30, the company has 1,880 finished surfboards in inventory, which complies with the policy.

	July		August		September
Sales (in units)	4,700		5,800		3,800

Prepare a production budget for the months of July and August.

ATLANTIC SURF
Production Budget
July and August
	July	August
Budgeted ending inventories
July
August
Required units of available production	0	0
Units to be produced

2. The Guitar Shoppe reports the following sales forecast: August, $170,000; September, $250,000. Total sales includes 40% cash sales, 50% credit sales collected in the month following sale, and 10% credit sales written off as uncollectible. Prepare a schedule of cash receipts for September.

THE GUITAR SHOPPE
Cash Receipts Budget
For Month Ended September 30
Cash receipts from August sales
Cash receipts from September sales
Total budgeted cash receipts	$0

3. Kingston anticipates total sales for June and July of $480,000 and $458,000, respectively. Cash sales are normally 60% of total sales. Of the credit sales, 20% are collected in the same month as the sale, 70% are collected during the first month after the sale, and the remaining 10% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the companys budgeted balance sheet as of July 31.

As of July 31
Sales month	Total Sales	Credit Sales	Percent Still Uncollected	Amount Uncollected
June	$480,000
July	458,000
Total

4. Santos Co. is preparing a cash budget for February. The company has $14,000 cash at the beginning of February and anticipates $69,000 in cash receipts and $103,000 in cash disbursements during February. What amount, if any, must the company borrow during February to maintain a $4,000 cash balance? The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.)

SANTOS CO.
Cash Budget
For Month Ended February 28
Beginning cash balance
Total cash available
Preliminary cash balance
Ending cash balance

5.

Use the following information:

Beginning cash balance on March 1, $73,000.

Cash receipts from sales, $310,000.

Budgeted cash payments for direct materials,$132,000.

Budgeted cash payments for direct labor $77,000.

Other budgeted cash expenses, $44,000.

Cash repayment of bank loan, $10,000.

Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.