Archer Electronics Company's actual sales and purchases for April May are shown here, along with forecasted sales and purchases for June through September Sales April actual May (actual une forecast July Horeca Auguit forecast) September forecast $ 370,000 350,000 325,000 325,000 140,000 180,000 Purchases $ 155,000 145,000 145,000 205,000 225,000 220,000 The company makes 20 percent of its for each and 8 percent on credit of the credit sales, 50 percentare collected in the month her 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 Labor expense quals 15 percent of the current month'suales Overhead expense equals $12.500 per month. Interest payments of 532.500 are due in June and September. A cash dividend of $82,500 is scheduled to be paid in June. Taxparents of $25,500 are due in June and September, there is a scheduled capital outlayof350.000 in September Archer Electronics ending cash balance in Mwis $22.500. The minimum desired cash balance is $10,500 Prepare a schedule of monthly cash receipts for lune through September Prepare the monthly cash payments for June through September Prepare a complete monthly cach budget with borrowing and repayments for through September. The All input valve are shown in yellow, Only these values med changed to review wigo versions Are played in red. Input variables Purchases April May June July Agu September Cashie Credit sales Credit les collected following month Credit les collected two months after sale Purchases paid following month Purchases paid two months after purchase Labor expenses Overhead Spense per month June and September interest payments une ca dividend June and September tax payments September capital out May ending cash balance Minimum desired cash balance Maximum desired cash balance 10 percent 90 percent percent percent percent percent percent of current month's les Maximum desired cash balance Solution and Explanation April May June July August 80 so SO 0 50 0 September $0 0 $0 0 Sales Credits Collections: Cash sales Credit collections month after sale Credit collections two months after sale Totalcash receipts S 59 50 0 50 $0 50 50 $0 $0 b. Purchases Payments Payments one month after purchase Payments two months after purchase Laboresponde Overhead expense Interest payments Dividend payments Tax payments Capital outlay Total payments 50 18 0 $0 50 9 $0 $0 9 to sels 9 50 50 Totalcach receipts Total cash payments Niet cash flow Beginning cash balance Cumulative cash balance Borrow Rapay loan Sellmarketable securities Buy marketable securities Ending cash balance SA 50 ES 52 Cumulative loan balance Cumulative marketable securities 50 50
