2 Marie Marx, the management accountant at "Go Jamdown" is in the process of planning the company's cash needs for the third quarter of 2008. She has received the following information to assist in the preparation of the cash budget for the business. Month Selling Expenses Cash Sales Credit Sales Purchases receipts May $140,000 $500,000 $0 June $160,000 $600,000 $600,000 July $180,000 $700,000 $675,000 $ 75,000 August $156,000 $580,000 $575,000 $105,000 September $160,000 $600,000 $600,000 $ 85,000 The following additional information is also available: i) ii) iii) iv) v) An analysis of the records show that the collection of accounts receivable are settled, according to the following pattern, in accordance with the credit terms 10/30, n90: o 50% collected in the month of sale 40% collected in the month following sale o 10% collected two months following sale R Eighty percent (80%) of monthly purchases is paid in the month of purchase & the remaining 20% will be paid two months following the purchase. The credit terms of the suppliers is 5/30, n90. 20,00 During the month of August, a motor vehicle costing $120,000 will be purchased and paid for in cash. At the same time, an old motor vehicle, which has a net book value of $80,000, will be disposed of at a loss of $10,000. R Interest on investments in other companies amounting to $65,000 is expected to be collected in August 2008. Administrative expenses are expected to be $1,200,000 per annum, and will include depreciation expense of $20.000 per month. 1.200.000/12= 100.000