At the office were in inventory. During the final of the ans are have an inventory of finished goods als at a Mamment wishes to maintain month-end inventories of Tawe altor the following the five hundred thousand pounds of raw mm pure a power for September October, and November Prepare a purchases budger in unit and dollars for September and October Cashbudgeting for Nichole Mango, al merchandising firm, is performed on a quarterly basis, The to assist in preparing a cash budger Budgeted income statements for July through October 2017 were on hand at the art of Sweden pany is planning its cashmeeds for the third quarter of 2017, and the following information is avail LO4 July. Prepare a monthly pany's bank and Cash Budget The Williams Supply dollars for the year a Month p9.37 Month MILE May... June ....... July ........ August ...... Account balance Cash...... Merchandise Accounts rec Accounts pa Problems LOS Cash Budget as follows July $22,000 (11,000) August $28,000 (15,000) 13,000 September $32,000 (17,000) 15,000 October $40.000 121.000 The company lowing month month. A 2 pc perience indi- the following budgeted sel $210,000,0 expenses ar sales. Expe Required a. Prepar b. Prepar c. Prepa cash d. Prepa P9-38 Budgeti Waucor 11.000 19.000 Sales..................... Cost of goods sold. Gross profit. Less other expenses Selling ........ Administrative.... Total ....................... Net income....... 4.000 5,000 3.300 3,600 (6,900) $ 4,100 (9,000 4,400 4,200 (8,600) $ 6,400 5,200 4,600 (9,800 $ 9,200 $ 4,000 center istered record SL O F Additional information rolows: 1. Other expenses, which are paid monthly, include $2,000 of depreciation per month. 2. Sales are 40 percent sh and 60 percent on credit. 3. Credit sales are coll 5 percent in the month of sale, 65 percent one month after sale, and 10 percent two months sale. May sales were $16,000, and June sales were $17.000 4. Merchandise is paid. U percent in the month of purchase, the remaining 50 percent is paid in the following month. Actats payable for merchandise at June 30 totaled $7.000 5. The company maintain its ending inventory levels at 20 percent of the cost of goods to be sold in the following month. The inventory at June 30 is $2.200, 6. An equipment note of $6,000 per month is being paid through August. 7. The company must maintain a cash balance of at least $6,000 at the end of each month. The cash balance on June 30 is $6,100. 8. The company can borrow from its bank as needed. Borrowings and repayments must be in multiples of $100. All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. When the principal is repaid, interest on the repayment is also paid. The interest rate is 12 percent per year. 341 Chapter 9 Operational Budgeting and Profit Planning Required ads. a. Prepare a monthly schedule of budgeted operating cash receipts for July, August, and September. 6. Prepare a monthly purchases budget and a schedule of budgeted cash payments for purchases for July, August, and September. C. Prepare a monthly cash budget for July, August, and September. Show borrowings from the com- pany's bank and repayments to the bank as needed to maintain the minimum cash balance. LO3 PS-37. Cash Budget The Williams Supply Company sells for $40 one product that it purchases for $25. Budgeted sales in total dollars for the year are $1,400,000. The sales information needed for preparing the July budget follows: Sales Revenue 1 ( Month $34,000 48,000 At the office were in inventory. During the final of the ans are have an inventory of finished goods als at a Mamment wishes to maintain month-end inventories of Tawe altor the following the five hundred thousand pounds of raw mm pure a power for September October, and November Prepare a purchases budger in unit and dollars for September and October Cashbudgeting for Nichole Mango, al merchandising firm, is performed on a quarterly basis, The to assist in preparing a cash budger Budgeted income statements for July through October 2017 were on hand at the art of Sweden pany is planning its cashmeeds for the third quarter of 2017, and the following information is avail LO4 July. Prepare a monthly pany's bank and Cash Budget The Williams Supply dollars for the year a Month p9.37 Month MILE May... June ....... July ........ August ...... Account balance Cash...... Merchandise Accounts rec Accounts pa Problems LOS Cash Budget as follows July $22,000 (11,000) August $28,000 (15,000) 13,000 September $32,000 (17,000) 15,000 October $40.000 121.000 The company lowing month month. A 2 pc perience indi- the following budgeted sel $210,000,0 expenses ar sales. Expe Required a. Prepar b. Prepar c. Prepa cash d. Prepa P9-38 Budgeti Waucor 11.000 19.000 Sales..................... Cost of goods sold. Gross profit. Less other expenses Selling ........ Administrative.... Total ....................... Net income....... 4.000 5,000 3.300 3,600 (6,900) $ 4,100 (9,000 4,400 4,200 (8,600) $ 6,400 5,200 4,600 (9,800 $ 9,200 $ 4,000 center istered record SL O F Additional information rolows: 1. Other expenses, which are paid monthly, include $2,000 of depreciation per month. 2. Sales are 40 percent sh and 60 percent on credit. 3. Credit sales are coll 5 percent in the month of sale, 65 percent one month after sale, and 10 percent two months sale. May sales were $16,000, and June sales were $17.000 4. Merchandise is paid. U percent in the month of purchase, the remaining 50 percent is paid in the following month. Actats payable for merchandise at June 30 totaled $7.000 5. The company maintain its ending inventory levels at 20 percent of the cost of goods to be sold in the following month. The inventory at June 30 is $2.200, 6. An equipment note of $6,000 per month is being paid through August. 7. The company must maintain a cash balance of at least $6,000 at the end of each month. The cash balance on June 30 is $6,100. 8. The company can borrow from its bank as needed. Borrowings and repayments must be in multiples of $100. All borrowings take place at the beginning of a month, and all repayments are made at the end of a month. When the principal is repaid, interest on the repayment is also paid. The interest rate is 12 percent per year. 341 Chapter 9 Operational Budgeting and Profit Planning Required ads. a. Prepare a monthly schedule of budgeted operating cash receipts for July, August, and September. 6. Prepare a monthly purchases budget and a schedule of budgeted cash payments for purchases for July, August, and September. C. Prepare a monthly cash budget for July, August, and September. Show borrowings from the com- pany's bank and repayments to the bank as needed to maintain the minimum cash balance. LO3 PS-37. Cash Budget The Williams Supply Company sells for $40 one product that it purchases for $25. Budgeted sales in total dollars for the year are $1,400,000. The sales information needed for preparing the July budget follows: Sales Revenue 1 ( Month $34,000 48,000