- 3 Master budget The following data relate to the operations of HASF Company a wholesale distributor of consumer goods Current assets as of March 31 Cash 48.000 Ale receivable 224,000 Inventory 60,000 Building and equipment net 370,000 Alc payable 93,000 Capital stock 500,000 Retained earnings 109,000 Gross profit is 40% of sales 2 Actual and budgeted sales data March 280,000 April 400,000 May 600.000 June 300,000 July 200,000 sales are 20% for cash and 80% on credit. Credit sales are collected in the month following sales 4 Each month ending inventory should equal to 25% of following month cost of goods sold 5 one half of a month 's inventory purchase is paid for in the month of purchase, other half is paid for in the month. 6 Monthly expense are follows Salaries and wages 27,000 Advertising exp 70,000 per month Shipping. 5% of sales Depreciation 42,000 per quarter Note these expenses are paid monthly 7 Equipment costing 1,700 will be purchase for cash in May, During June other equipment will be purchase for cash at cost 84,500 8 Management would like to maintain a minimum cash balance of at least 30,000 at the end of each month the company has an agreement with a local bank that allows the company to borrow in the increments of 1,000 at the beginning of each month up to a total loan balance of 20,000 The interest rate on these loan is 1% per month 10 During April company declare and pay 45, in cash dividends Required Using the preceding data compute, the following for April May June and total Schedule of expected cash collection Merchandise purchase budget Schedule of expected cash disbursements Merchandise purchase Schedule of expected cash disbursements for selling and administrative expense Cash budget 2 income statement 3 balance sheet