ABC Company is a wholesale distributor of soft drinks. ABC Company's balance sheet

as

at

August 31

is

as follows

:

Cash $ 11,000

Accounts receivable 75,000

Inventory 42,000

Buildings and equipment, net of depreciation 38,000

Accounts payable 89,000

Note payable 35,000

Common shares, no par 280,000

Retained earnings 62,000

ABC C

ompany is in the process of preparing budget data for September. A number of

budget items have already been prepared, as stated below.

Sales are budgeted at $300,000 for September. Of these sales, $120,000 will be for

cash; the remainder will be credit sales. A total of 35% of a month's credit sales are

collected in the month the sales are made, and the remainder is collected in the following month. All of the

August 31 accounts receivable will be collected in September.

Purchases of inventory are expected to total $216,000 during September. These

purchases will all be on account. A total of 60% of all purchases are paid for in the

month of purchase; the remainder is paid in the following month. All of the August 31

accounts payable to suppliers will be paid during September.

The September 30inventory balance is budgeted at $50,000.

Selling and administrative expenses for September are budgeted at $71,000, inclusive

of depreciation and are paid when incurred. Depreciation is budgeted at $5,000 for

September. New refrigerating equipment costing $10,000 will be purchased for cash during

September.

ABC Company requires a minimum of $6,000 in cash to begin the following month.

Required:

prepare BC Company's cash budget for September ?