1) Westwood Appliances accounts receivable balance on May 31 is $72,000 (.20 x May sales of $360,000). Their monthly forecasted sales are: June: $437,000, July: $441,000, August: $502,000, September: $531,000. Sales consist of 80% cash and 20% credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored. Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August.

2) CJs distribution was preparing a sales budget for the first quarter of 2016. Forecast sales are as follows. January: $203,000, February: $227,000, March: $248,000. Sales are 40% cash and 60% on credit. Fifty-five percent of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month. No uncollectible accounts are anticipated. Accounts receivable at the beginning of 2016 are $82,950 (10% of November credit sales of $150,000 and 45% of December credit sales of $151,000). Prepare a schedule showing sales and cash collections for January, February, and March, 2016.

3) REF Outfitters offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern:

Cash collected at time of sale 55%

Collected within cash discount period in first 10 days of month after sale 15%

Collected after cash discount period in first month after month of sale 10%

Collected after cash discount period in second month after month of sale 15%

Never collected 5%

Compute the total cash budgeted to be collected in March if sales forecasts are $370,000 for January, $420,000 for February, and $460,000 for March.

4) Clarks Retail plans inventory levels (at cost) at the end of each month as follows: May: $271,000, June: $226,000, July: $209,000, and August: $241,000. Sales are expected to be June: $449,000, July: $359,000, August: $306,000. Cost of goods sold is 65% of sales. Purchases in April were $258,000 and in May they were $188,000. Payments for each months purchases are made as follows: 15% during that month, 70% the next month, and the final 15% the next month. Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.

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