1. Compute the amount of cash inflow for September based on the following budgeted credit sales.

June 100,000

July 120,000

August 80,000

September 90,000

Assume that 70% of accounts receivable are collected in the month of the credit sale, 20% in the month following the sale, and 10% in the second month following the sale.

2.

Compute the amount of borrowing based on the following data.

Beginning cash balance 80,000

Cash receipts 50,000

Cash disbursements 72,000

Minimum ending cash balance 75,000