4. Cash disbursements budget: Note: Round your inventory purchases up to the nearest whole dollar. \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{201} \\ \hline & January & February & March & First Quartor \\ \hline \multicolumn{5}{|l|}{ Cash receipts (from part 2) } \\ \hline Less: Cash disbursements (from part 4) & & & & \\ \hline \multicolumn{5}{|c|}{ Change in cash balance during period due to operations } \\ \hline \multicolumn{5}{|l|}{ Sale of marketable securities (1/2/1)} \\ \hline \multicolumn{5}{|l|}{ Proceeds from bank loan (1/2/1)} \\ \hline \multicolumn{5}{|l|}{ Purchase of equipment } \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Repayment of bank loan (3/31/x1) \\ Interest on bank loan \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Interest on bank loan } \\ \hline \multicolumn{5}{|l|}{ Payment of dividends } \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l|l|} Change in cash balance during first quarter \\ Cash balance 1/1/x1 \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Cash balance, 1/1/11} \\ \hline Cash balance, 3/31/1 & & & & \\ \hline \end{tabular} 1. Sales budget: \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{201} \\ \hline & January & February & March & First Quarter \\ \hline Cash saies & & & & \\ \hline \multicolumn{5}{|c|}{ Cash collections from credit sales made during current month } \\ \hline \multicolumn{5}{|c|}{ Cash collections from credit sales made during preceding month } \\ \hline Total cash receipts & & & & \\ \hline \end{tabular} Required information [The following information apples to the questions disployed below] We really need to get this new material handling equipment in operation just after the new year begins. I hope we can finance R largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank"- This statement by Beth Davies-Lowry, president of intercoastal Electronics Compary, concluded a meeting she had called with the firm's too menagement intercoastal is a small. rapldly growing wholesaler ef consumer electronic products. The firm's main product lines are small kitchen appliances and power tooks. Marcia Polosky, htercoastar's General Manager of Marketing, has recently completed a saies forecast She believes the compony's sales durng the Int puarter of 20xt will increase by 10 percent each month over the previous month's sales. Then Polosicy expects sales to remein constant for several months intercoastal's projected balance sheet as of Deceenber 31,200, is as follows: Joequin Rafoel, the assistant controller, is now preparing a monehly budget for the frst quarter of 201, In the process, the following information has been accumulated. 1. Projected sales for December of 200 are $500,000. Credt sales \$ypicaly are 70 percent of total sales. Intercoastal's credit experience indicates that 20 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month. 2. intercoastar's cost of goods sold generaly runs at 70 percent of siles inventory is purchased on account, and 30 percent of each month's purchases are paid during the month of purchuse. The remander is paid during the following month. in order to have adequate stocks of imventory on hand, the trm artempts to have inventory at the end of each month equal to half of the next month's projected cost of goods sold. 3. Rafaet has estimated that intercoactar's other monthly expenses will be as follows. In addition, sales commisvions fun at the rate of 3 percent of sater. 4. invercoostal's presidenc, Devies Lowry, has indicated that the frm should invest $105,000 in an automated inventory handing system to control the movement of inventory in the firm's warehouse just aher the new year begins. These eouipment parchases wit be finunced prinarly from the firm's cash end marketable secaricles. Howerec, Davies Lowry believes that intercoastal needs to keep a minimum cash balance of se0,000. if necessay, the remainder of the equipment purchases wil be fintenced using short term credit. from s iscal benk. The minimum period for such a loan is three months. Rafael believes shonterm interest trats wit be 10 percent per year at the time of the equipment purchases. if a loan is necessary. Davies: Lomry has decided in should be paid off by the end of the fest acarter if possble. 5. intercossters beard of diections has indicated an intention to declive and por dividends of $75,000 on the lost digy of each quarter. Required: \begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{200} & \multicolumn{4}{|c|}{201} \\ \cline { 2 - 6 } & Docember & January & Fobruary & March & First Quarter \\ \hline Budgeted cost of goods sold & & & & & \\ \hline Add: Desired ending inventory & & & & & \\ \hline Total goods needed & & & & & \\ \hline Less: Expected beginning inventory & & & & & \\ \hline Purchases & & & & & \\ \hline \end{tabular} 6. Calculation of required short-term borrowing. 4. Cash disbursements budget: Note: Round your inventory purchases up to the nearest whole dollar. \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{201} \\ \hline & January & February & March & First Quartor \\ \hline \multicolumn{5}{|l|}{ Cash receipts (from part 2) } \\ \hline Less: Cash disbursements (from part 4) & & & & \\ \hline \multicolumn{5}{|c|}{ Change in cash balance during period due to operations } \\ \hline \multicolumn{5}{|l|}{ Sale of marketable securities (1/2/1)} \\ \hline \multicolumn{5}{|l|}{ Proceeds from bank loan (1/2/1)} \\ \hline \multicolumn{5}{|l|}{ Purchase of equipment } \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{l} Repayment of bank loan (3/31/x1) \\ Interest on bank loan \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Interest on bank loan } \\ \hline \multicolumn{5}{|l|}{ Payment of dividends } \\ \hline \multicolumn{5}{|l|}{\begin{tabular}{|l|l|} Change in cash balance during first quarter \\ Cash balance 1/1/x1 \end{tabular}} \\ \hline \multicolumn{5}{|l|}{ Cash balance, 1/1/11} \\ \hline Cash balance, 3/31/1 & & & & \\ \hline \end{tabular} 1. Sales budget: \begin{tabular}{|c|c|c|c|c|} \hline & \multicolumn{4}{|c|}{201} \\ \hline & January & February & March & First Quarter \\ \hline Cash saies & & & & \\ \hline \multicolumn{5}{|c|}{ Cash collections from credit sales made during current month } \\ \hline \multicolumn{5}{|c|}{ Cash collections from credit sales made during preceding month } \\ \hline Total cash receipts & & & & \\ \hline \end{tabular} Required information [The following information apples to the questions disployed below] We really need to get this new material handling equipment in operation just after the new year begins. I hope we can finance R largely with cash and marketable securities, but if necessary we can get a short-term loan down at MetroBank"- This statement by Beth Davies-Lowry, president of intercoastal Electronics Compary, concluded a meeting she had called with the firm's too menagement intercoastal is a small. rapldly growing wholesaler ef consumer electronic products. The firm's main product lines are small kitchen appliances and power tooks. Marcia Polosky, htercoastar's General Manager of Marketing, has recently completed a saies forecast She believes the compony's sales durng the Int puarter of 20xt will increase by 10 percent each month over the previous month's sales. Then Polosicy expects sales to remein constant for several months intercoastal's projected balance sheet as of Deceenber 31,200, is as follows: Joequin Rafoel, the assistant controller, is now preparing a monehly budget for the frst quarter of 201, In the process, the following information has been accumulated. 1. Projected sales for December of 200 are $500,000. Credt sales \$ypicaly are 70 percent of total sales. Intercoastal's credit experience indicates that 20 percent of the credit sales are collected during the month of sale, and the remainder are collected during the following month. 2. intercoastar's cost of goods sold generaly runs at 70 percent of siles inventory is purchased on account, and 30 percent of each month's purchases are paid during the month of purchuse. The remander is paid during the following month. in order to have adequate stocks of imventory on hand, the trm artempts to have inventory at the end of each month equal to half of the next month's projected cost of goods sold. 3. Rafaet has estimated that intercoactar's other monthly expenses will be as follows. In addition, sales commisvions fun at the rate of 3 percent of sater. 4. invercoostal's presidenc, Devies Lowry, has indicated that the frm should invest $105,000 in an automated inventory handing system to control the movement of inventory in the firm's warehouse just aher the new year begins. These eouipment parchases wit be finunced prinarly from the firm's cash end marketable secaricles. Howerec, Davies Lowry believes that intercoastal needs to keep a minimum cash balance of se0,000. if necessay, the remainder of the equipment purchases wil be fintenced using short term credit. from s iscal benk. The minimum period for such a loan is three months. Rafael believes shonterm interest trats wit be 10 percent per year at the time of the equipment purchases. if a loan is necessary. Davies: Lomry has decided in should be paid off by the end of the fest acarter if possble. 5. intercossters beard of diections has indicated an intention to declive and por dividends of $75,000 on the lost digy of each quarter. Required: \begin{tabular}{|l|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{200} & \multicolumn{4}{|c|}{201} \\ \cline { 2 - 6 } & Docember & January & Fobruary & March & First Quarter \\ \hline Budgeted cost of goods sold & & & & & \\ \hline Add: Desired ending inventory & & & & & \\ \hline Total goods needed & & & & & \\ \hline Less: Expected beginning inventory & & & & & \\ \hline Purchases & & & & & \\ \hline \end{tabular} 6. Calculation of required short-term borrowing