Acc. 202 Managerial Accounting Shortie #3 Print: Part I (10 points) Gina's company, Daisy's Delights Barkery & Boutique (DDB&B) is in the process of preparing their cash budget for the month of August. They have provided you with the following sales budget: Last, Rent GROSS SALES CREDIT WEST CHESTER UNIVERSTIY SCHOOL OF BUSINESS DEPARTMENT OF ACCOUNTING Amortization expense First MAY $50,000 Professor Frank C. Lordi, CPA, CMA, CGMA Fall Semester 2023 Section: 9:00,10:00.11:00,12:00 Circle One JUNE $80,000 CASH Based on past experience, 10% of all sales are cash sales while 90% are credit sales. The typical collection pattern for credit sales is 20% in the month of sale, 50% in the first month following sale and 25% in the second month following sale. There is an estimated uncollectible rate of 5%. The ending cash budget at July 31 is projected to be $12,000. Budgeted costs for the month of August are as follows: The minimum cash balance needed to start a month is $10,000. All borrowing must be in increments of $1,000. All expenses are paid in the month incurred except for inventory. Inventory is paid 1/3 in the month of purchase and 2/3 in the month following purchase. Utilities expense July Purchases of supplies August Purchases of supplies Salaries Administrative expenses $15,000 $75,000 $180,000 $65,000 $36,000 JULY $90,000 $45,000 $10,000 AUGUST $100,000 (Includes $6,000 of depreciation expense) REQUIRED: (1) Prepare a schedule of BUDGETED CASH RECEIPTS FOR AUGUST and (2) Prepare a CASH BUDGET FOR THE MONTH OF AUGUST. Assume total cash receipts (collected) for Part (1) was $73,000!! Show and label all computations!! Show and label all work on the back!! (6 points) : Cash Receipts Cash Disbursements Schedule I-DDB&B Company Cash Receipts for August (4 points) Total Cash Receipts S DB&B Cash Budget For the month of August Assume Total Cash Available Ending Cash Balance $73,000