Archer Electronics Companys actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September.

	Sales	Purchases
April (actual)	$ 370,000	$ 155,000
May (actual)	350,000	145,000
June (forecast)	325,000	145,000
July (forecast)	325,000	205,000
August (forecast)	340,000	225,000
September (forecast)	380,000	220,000

The company makes 20 percent of its sales for cash and 80 percent on credit. Of the credit sales, 50 percent are collected in the month after the sale, and 50 percent are collected two months later. Archer pays for 20 percent of its purchases in the month after purchase and 80 percent two months after.

Labor expense equals 15 percent of the current months sales. Overhead expense equals $12,500 per month. Interest payments of $32,500 are due in June and September. A cash dividend of $52,500 is scheduled to be paid in June. Tax payments of $25,500 are due in June and September. There is a scheduled capital outlay of $350,000 in September.

Archer Electronics ending cash balance in May is $22,500. The minimum desired cash balance is $10,500.

a.	Prepare a schedule of monthly cash receipts for June through September.

Archer Electronics Cash Receipts Schedule
	April	May	June	July	August	September
Sales	$	$	$	$	$	$
Credit sales
Collections:
Cash sales			$	$	$	$
One month after sale
Two months after sale
Total cash receipts			$	$	$	$

b.	Prepare a schedule of monthly cash payments for June through September.

Archer Electronics Cash Payments Schedule
	April	May	June	July	August	September
Materials purchases:	$	$	$	$	$	$
Payments:
Materials: One month after purchase
Materials: Two months after purchase
Labor expense
Overhead expense
Interest payments
Dividend payments
Tax payments
Capital outlay
Total payments			$	$	$	$

c.

Prepare a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $50,500. Excess cash (above $50,500) is used to buy marketable securities. Marketable securities are sold before borrowing funds in case of a cash shortfall (less than $10,500).(Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Assume the June beginning loan balance and beginning marketable security balance is $0.)

Archer Electronics Cash Budget
		June	July	August	September
Total cash receipts		$	$	$	$
Total cash payments
Net cash flow
Beginning cash balance
Cumulative cash balance		$	$	$	$
Borrow
Repay loan
Sell marketable securities
Buy marketable securities
Ending cash balance		$	$	$	$
Cumulative loan balance	$	$	$	$	$
Cumulative marketable securities	$	$	$	$	$