Additional data:

*All sales are on credit

*Collections from customers are usually 50% in the month of sale, 40% in the month following the sale and 79 in the second month following the sale. The balance of the accounts receivable are expected to be uncollectible.

*All purchases are for inventpry on credit. Management takes full advantage of the 3% discount on purchases paid for by the 10'* day of the following month.

*Other operating expenses are estimated at 85,000 per month-which includes $500 depreciation. Payment of those expenses is made during the month.

*During August Rock plans to pay 525,000 cash for improvements to fitting rooms.

*During September 55,000 is expected to be received from the disposal of surplus furniture

*Cash balance at 1 July was $10,000.

Required:

Using the above information, prepare the cash budget for each of the

months july, August and September and the total for the quarter.

200 1 Developing a Cosh Budget - Rock Fashions Rock Fashions financial projections for the sale of fashion clothing and purchase of stock are: Month Sales Purchases May $36,000 $10,000 June 52,000 40,000 July 48,000 36,000 August 54,000 24,000 September 60,000 38,000 Developing a Cash Budget Hock Fashions Hock Fashions Financial projections for the sale of fashion clothing and purchase of stock are; Month Sales Purchases May 336.000 $10,000 June 52,000 40,000 July 18.000 36,000 August 54,000 24.000 September 60,000 38.000 Additional data All sales are on credit Collections from customers are usually Sow in the month of sale, 40w in the month following the sale and 7w in the second month following the sale. The balance of the accounts receivable are expected to be uncollectible, Al purchases are for Irventory on credit. Management takes full advantage of the 3% discount on purchases paid for by the Tort day of the following month. other operating expermes are estimated at $5,000 per month which includes $500 depreciation. Payment of those expensex is made during the month. During August Rod plans to pay $25,000 cash for improvements to fitting rooms *During September 55.000 is expected to be received from the disposal of surplus fumiture *Cash balance at jy was 510,000 Required Using the above information, prepare the cash budget for each of the mortis y Aunt and ember and the total for the cute