1. The president of Univax, Inc., has just approached the company's bank seeking short-term financing for the coming year, Year 2. Univax is a distributor of commercial vacuum cleaners. The bank has stated that the loan request must be accompanied by a detailed cash budget that shows the quarters in which financing will be needed, as well as the amounts that will be needed and the quarters in which repayments can be made. To provide this information for the bank, the president has directed that the following data be gathered from which a cash budget can be prepared: a. Budgeted sales and merchandise purchases for Year 2, as well as actual sales and purchases for the last quarter of Year 1, are as follows: Sales Year 1 Fourth quarter actual $390,000 $290,000 Year 2 First quarter estimated Second quarter estimated Third quarter estimated Fourth quarter estimated $490,000 $370,000 $590,000 $690,000 $480,000 $570,000 $420,000 $350,000 b. The company typically collects 48% of a quarter's sales before the quarter ends and another 50% in the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the actual data for the Year 1 fourth quarter C. Some 15% of a quarter's merchandise purchases are paid for within the quarter. The remainder is paid d. Selling and administrative expenses for Year 2 are budgeted at $83,000 per quarter plus 8% of sales. Of e. The company will pay $13,000 in cash dividends each quarter in the following quarter the fixed amount, S19,000 each quarter is depreciation. f. Land purchases will be made as follows during the year: S85,000 in the second quarter and $48,900 in g. The Cash account contained S40,000 at the end of Year 1. The company must maintain a minimunm h. The company has an agreement with a local bank that allows the company to borrow in increments of the third quarter cash balance of at least $38,000 $10,000 at the beginning of each quarter, up to a total loan balance of $100,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the year b. The company typically collects 48% of a quarter's sales before the quarter ends and another 50% in the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the actual data for the Year 1 fourth quarter C. Some 15% of a quarter's merchandise purchases are paid for within the quarter. The remainder is paid d. Selling and administrative expenses for Year 2 are budgeted at $83.000 per quarter plus 8% of sales. Of e. The company will pay $13,000 in cash dividends each quarter. in the following quarter the fixed amount, $19,000 each quarter is depreciation. f. Land purchases will be made as follows during the year $85,000 in the second quarter and $48,900 in the third quarter The Cash account contained $40,000 at the end of Yoar 1. The company must maintain a minimum cash balance of at least $38,000. h. The company has an agreement with a local bank that allows the company to borrow in increments of $10,000 at the beginning of each quarter, up to a total loan balance of $100,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the year At present, the company has no loans outstanding. 0 i. 1a. Prepare a schedule of expected cash collections on sales by quarter and in total for Year 2. (Leave no cells blank - be certain to enter "O" wherever required. Omit the "S sign in your response.) Schedule of Expected Cash Collections Year 2 Quarter Seconds Total First Third Fourth Year 1 Fourth quarter sales Year 2- First quarter sales Year 2-Second quarter sales Year 2 Third quarter sales Year 2-Fourth quarter sales Total cash collections 1b. Prepare a schedule of expected cash disbursements for merchandise purchases, by quarter and in total for Year 2. (Leave no cells blank be certain to enter "O wherever required. Omit the "S sign in your response.) 1b. Prepare a schedule of expected cash disbursements for merchandise purchases, by quarter and in total for Year 2. (Leave no cells blank be certain to enter "O" wherever required. Omit the "$ sign in your response.) Schedule of Expected Cash Disbursements-Merchandise Purchases Year 2 Quarter First Third Fourth Total Year 1-Fourth quarter purchases Year 2- First quarter purchases Year 2- Second quarter purchases Year 2-Third quarter purchases Year 2- Fourth quarter purchases Total cash disbursements 2. Compute the expected cash disbursements for selling and administrative expenses, by quarter and in total, for Year 2. (Omit the "$" sign in your response.) Cash First Second Third Fourth Year 3. Prepare a cash budget by quarter and in total for Year 2. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Leave no cells blank be certain to enter wherever required. Omit the "$" sign in your response.) Univax, Inc. Cash Budget 3. Prepare a cash budget by quarter and in total for Year 2. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Leave no cells blank-be certain to enter "0" wherever required. Omit the "S" sign in your response.) Univax, Inc. Cash Budget Year 2 Quarter First Third Fourth Year Cash balance, beginning Add collections from sales Total cash available Less disbursements: Merchandise purchases Operating expenses Excess (deficiency) of receipts over disbursements Financing Interest Total financing Cash balance, ending 2. Janus Products, Inc., is a merchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter. In the past, Janus Products has had to borrow money during the third quarter to support peak sales of back-to-school materials, which occur during August. The following information has been assembled to assist in preparing a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for July-October are as follows: July August September October 34,000 S 64,000 S 54,000 $40,000 22,000 40,000 24,000 26,000 Sales Cost of goods sold Gross margin Selling and administrative expenses 12,000 24,000 30,000 14,000 Selling expense 5,200 10,200 4.200 6,200 7,200 6,700 5,300 4,700 Total selling and administrative expenses 9,400 16,400 12,500 11400 S 2,600 S 7,600 S 17,500 $ 2,600 Net operating income Includes $1,200 depreciation each month. b. Sales are 25% for cash and 75% on credit C. Credit sales are collected over a three-month period with 10% collected in the month of sale, 70% in the month following sale, and 20% in the second month following sale. May sales totaled $27,000, and June sales totaled $33,000 d. Inventory purchases are paid for within 15 days. Therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable for inventory purchases at June 30 total $10,700. e. The company maintains its ending inventory levels at 70% of the cost of the merchandise to be sold in the following month. The merchandise inventory at June 30 is $15,400 f. Land costing $3,700 will be purchased in July. g. Dividends of $1,300 will be declared and paid in September h. The cash balance on June 30 is $5,000; the company must maintain a cash balance of at least this amount at the end of each month. i. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the g. Dividends of $1,300 will be declared and paid in September h. The cash balance on June 30 is $5,000; the company must maintain a cash balance of at least this amount at the end of each month i. The company has an agreement with a local bank that allows it to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $40,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated nterest at the end of the quarter Required: 1. Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (Leave no cells blank-be certain to enter"0" wherever required. Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Collections st Quarter Cash sales Sales on account: May July August Total cash collections 2. Prepare the following for for merchandise inventory a. A merchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget Au Budgeted cost of goods sold (Click to select)(Click to select) Total needs May July August Total cash collections 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget Budgeted cost of goods sold (Click to select) (Click to Add Deduct (Click to select)(Click to select) Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank- be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements ber Quarter Accounts payable, June 30 July purchases August purchases May July August Total cash collections 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget Budgeted cost of goods sold (Click to select) (Click to Add Deduct (Click to select)(Click to select) Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank- be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements ber Quarter Accounts payable, June 30 July purchases August purchases May July Total cash collections 2. Prepare the following for merchandise inventory: a. A merchandise purchases budget for July, August, and September. (Input all amounts as positive values. Do not round intermediate calculations. Omit the "$" sign in your response.) Merchandise Purchases Budget Budgeted cost of goods sold (Click to select)(Click to select) Ending inventory Beginning inventory Total needs Click to select)(Click to select) Required inventory purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total. (Leave no cells blank -be certain to enter "" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements ber Quarter Accounts payable, June 30 July purchases August purchases b. A schedule of expected cash disbursements for merchandise purchases for July, August, and September and for the quarter in total, (Leave no cells blank-be certain to enter "O" wherever required. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements st Quarter Accounts payable, June 30 July purchases August purchases Total cash disbursements 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Total Fi repaying amounts that were previously borrowed. Selling and Administrative expenses are paid in the month in which the expenses are incurred. Leave no cells blank- be certain to enter "O" wherever required. Omit the "$" sign in your response.) should be indicated with a minus sign when the company is Janus Products, Inc. Cash Budget For the Quarter Ended September 30 Jul Quarter Cash balance, beginning Add collections from sales Total cash available Less disbursements: For inventory purchases For selling expenses For administrative expenses For land 3. Prepare a cash budget for July, August, and September and for the quarter in total. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed. Selling and Administrative expenses are paid in the month in which the expenses are incurred. Leave no cells blank-be certain to enter "O" wherever required. Omit the "$" sign in your response.) Janus Products, Inc. Cash Budget For the Quarter Ended September 30 Quarter Cash balance, beginning Add collections from sales Total cash available For inventory purchases For selling expenses For administrative expenses For land For dividends Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayment Interest Total financing Cash balance, ending