a. The cash balance on July 1 is $41,600. b. Actual sales for May and June and expected sales for July are as follows: Cash sales Sales on account May July $ 81,200 $ 72,000 $ 96,200 $495,000 $512,000 $684,000 June Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. Purchases of inventory will total $285,000 for July. Thirty percent of a month's inventory purchases are paid during the month of purchase. The accounts payable remaining from June's Inventory purchases total $185,000, all of which will be paid in July. d. Selling and administrative expenses are budgeted at $455,000 for July. Of this amount, $89.600 is for depreciation. e. A new web server for the Marketing Department costing $79.000 will be purchased for cash during July, and dividends totaling $10,000 will be paid during the month. The company maintains a minimum cash balance of $20,000. An open line of credit is available from the company's bank to Increase its cash balance as needed. < Prev 3 of 20. Next >