ACCT 202 Cash Budget Assignment Shilow Company, a seller of mechanical cats, is ready to begin its third quarter. The company has been granted a $50,000, 90-day loan from the bank to help meet cash requirements during the third quarter. The company wishes to prepare a cash budget, using the following information: 1. a. On July 1, the beginning of the third quarter, the company will have a cash balance of $200,000. b. Actual sales for the last two months and budgeted sales for the third quarter follow May (actual) June (actual) July (budgeted) August (budgeted) 600,000 September (budgeted) 320,000 $250,000 300,000 400,000 Past experience shows that 20% of a month's sales are for cash. Of the remainder, 80% are collected in the month following sale, and 20% in the second month following sale. c. Budgeted merchandise purchases and budgeted expenses for the third quarter are given below: Merchandise purchases $240,000 350,000 $175,000 Salaries and wages Advertising Rent payments Depreciation 45,000 130,000 9,000 40,000 145,000 9,000 10,000 80000 9,000 10,000 Fifty percent of merchandise purchases are paid in full in the month of purchase, and 50% are paid for in the month following purchase. Accounts payable for merchandise purchases on June 30, which will be paid during July, total 5170,000. d. Equipment costing $10,000 will be purchased for cash during July. e. The $50,000 loan will be made in July and repaid in September, along with $1,500 of interest. Prepare a schedule of expected cash collections for July, August, September, and for the quarter in total. Also prepare a schedule of expected cash disbursements for July, August, September, and for the quarter in total 1. 2. Prepare a cash budget, by month and in total, for the third quarter