8	Actual and Budgeted Unit Sales:
9	April	1,500
10	May	1,000
11	June	1,600
12	July	1,400
13	August	1,500
14	September	1,200
15
16	Balance Sheet, May 31, 19X5
17	Cash	$8,000
18	Accounts receivable	107,800
19	Merchandise inventory	52,800
20	Fixed assets (net)	130,000
21		--------
22	Total assets	$298,600
23		========
24	Accounts payable (merchandise)	$74,800
25	Owner's equity	223,800
26		--------
27	Total liabilities & equity	$298,600
28		========
29
30	Average selling price	$98
31	Average purchase cost per unit	$55
32	Desired ending inventory
33	(% of next month's unit sales)	60%
34	Collections from customers:
35	Collected in month of sale	20%
36	Collected in month after sale	60%
37	Collected two months after sale	20%
38	Projected cash payments:
39	Variable expenses	30%	of sales
40	Fixed expenses (per month)	$10,000
41	Depreciation per month	$1,000
42
43	-	-	-	-
44	Answer Section:
45	Sales Budget
46	------------
47		June	July	August
48		------	------	------
49	Units	1,600	1,400	1,500
50	Dollars	$156,800	137,200	147,000
51
52	Unit Purchases Budget
53	---------------------
54		June	July	August
55		------	------	------
56	Desired ending inventory	840	900	720
57	Current month's unit sales	1,600	1,400	1,500
58		--------	--------	--------
59	Total units needed	2,440	2,300	2,220
60	Beginning inventory	960	840	900
61		--------	--------	--------
62	Purchases (units)	1,480	1,460	1,320
63		========	========	========
64	Purchases (dollars)	$81,400	$80,300	$72,600
65		========	========	========
66
67	Cash Budget
68	-----------
69		June	July	August
70		------	------	------
71	Cash balance, beginning	$8,000	$8,000	$8,000
72	Cash receipts:
73	Collections from customers:
74	From April sales	29,400
75	From May sales	58,800	19,600
76	From June sales	31,360	94,080	31,360
77	From July sales		27,440	82,320
78	From August sales			29,400
79		--------	--------	--------
80	Total cash available	$127,560	$149,120	$151,080
81	Cash disbursements:
82	Merchandise	$74,800	$81,400	$80,300
83	Variable expenses	47,040	41,160	44,100
84	Fixed expenses	10,000	10,000	10,000
85	Interest paid	0	184	59
86		--------	--------	--------
87	Total disbursements	$131,840	$132,744	$134,459
88		--------	--------	--------
89	Cash balance before financing	($4,280)	$16,376	$16,621
90	Less: Desired ending balance	8,000	8,000	8,000
91		--------	--------	--------
92	Excess (deficit) of cash over needs	($12,280)	$8,376	$8,621
93		--------	--------	--------
94	Financing
95	Borrowing	$12,280	$0	$0
96	Repayment	0	(8,376)	(3,904)
97		--------	--------	--------
98	Total effects of financing	$12,280	($8,376)	($3,904)
99		--------	--------	--------
100	Cash balance, ending	$8,000	$8,000	$12,717