1 Els Electronics Company's actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September 25 points Aorii Cactual) May (actual) June (Forecast) July (Forecast) August (forecast) September forecast) Sales $430,000 110,000 305,000 385,000 400,000 440,000 Purchases $141,000 131,000 131,000 191,000 211,000 181,000 Block The company makes 40 percent of its sales for cash and 60 percent on credit. Or the credit soles, 10 percent are collected in the month after the sale and 90 percent are collected two months after. Ellis pays for 40 percent of its purchases in the month after purchase and 60 percent two months after Labour expense equals 25 percent of the current month's sales Overhead expense equals $13,100 per month. Interest payments of $35,500 are due in June and September. A cash dividend of 555,500 is scheduled to be paid in June. Tax payments of $26.100 are due in June and September. There is a scheduled capital outloy of $410,000 in September Elis Electronics ending cash balance in May is $25,500 The minimum desired cash balance is $20,500. a. Prepare a schedule of monthly cash receipts for June through September Ellis Electronics Cash Receipts Schedule Arts June September Sales Credit sales Cash sales Collections in months after sale Collections second month after sale 5 HI on receipts b. Prepare the monthly cash payments for June through September Ellis Electronics Cash Payments Schedule May April June July August Septber Purchases Payments in the month after purchase Payments second month after purchase Labour expense Overhead Interest payments Cash dividend Taxes Capital outlas Total cash payments c. Prepare a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $51,100. Excess cash (above $51,100) is used to buy marketable securities. Marketable securities are sold before borrowing funds in case of a cash shortfall (less than $20,500) (Do not leave any empty spaces; input wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.) Ellis Electronics Cash Budget June July August September Cash receipts Cash payments $ $ $ 5 Net cash flow Beginning cash balance Cumulative cash balance Monthly borrowing or repayment) Cumulative loan balance Marketable securities purchased Marketable securities soid Cumulative marketable Securities Ending cash balance