ABC Company sells one product, Product X. Below is information on its activities for the next few months. Sales projections for the coming months are as follows: Estimated Sales (in units) July August September October Product X 10,000 12,000 3,000 8,000 Actual sales in May were 10,000 units; actual sales in June were 14,000 units. Product X sells for $500/unit. Estimated cach collections from sales of each month are as follows: 65% collected in the month of sale, 30% collected in the month after sale, and 5 C ot be collected 3. Desired ending inventory of is 20% of the next month's projected cakes. There are 4,000 units in inventory on June 30. Cost for inventory is $225/unit The company pops for inventory purchases as follows: 60% in the month of purchase, and 40% in the month following purchase. The accounts pwyuble balance (due to inventory purchases) on June 30 was $1500,000, which is all payable in July. Commissions on sales = 25% of total sales for each month 7. Total variable selling and administrative costs are $75/unit of sold 8 Depreciation expcrse is $2.500 a month. 8. Cash balance as of June 30 $845,000. Sales Budget May June July Sale in units Price Sales Amount 10,000 500 5,000,000 14,000 500 1,000,000 10,000 500 5,000,000 August 12,000 500 $ 6,000,000 September 9,000 500 $ 4,500,000 October 8,000 500 $ 4,000,000 $ $ Purchase Budget May June July October 10,000 14,000 September 9,000 1,800 1,600 8,000 1600 4000 Sale in unite Iny Eine Purchase Nasded Price per unit Total Puchage Amount August 12,000 2,400 1,800 11,400 $ 225 $ 2,565,000 10,000 4,000 2,400 8,400 225 1,890,000 8,800 6,400 $ $ 225 1,980,000 $ CALCULATE CASH BUDGET Cach May June July August September Total Sales Amount Collections: 658 month of sale 30% month after sale Total Collections Total Purchase Payments 65% month of sale 30% one month after sale Total Payments Additional Disbursements: Consions $&A expo Tots Other Disbursements Cash Infow/Outflow B C D atec E. Cash Balance