ABC Company is a wholesale distributor of soft drinks. ABC Company's balance sheet as at August 31 is as follows:

ABC Company 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 30 inventory 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 ABC Company's cash budget for September.

Cash Accounts receivable Inventory Buildings and equipment, net of depreciation Accounts payable Note payable Common shares, no par Retained earnings $ 11,000 75,000 42,000 338,000 89,000 35,000 280,000 62,000