Bill's Bagels has budgeted the following sales through March (see below). Bill's sales are expected as follows: cash 40% / credit (accounts receivable) 60% Sales on credit are expected to be collected 60% in following month and the other 40 % in the month after that. Bill will purchase food inventory at 30% of prior month's sales and desires to have $15,000 in cash available at all times. Other relevant information is provided below. Required: Calculate credit sales/cash sales through the end of March Calculate the expected collection on receivables assuming no bad debt Calculate budgeted cash disbursements through March Calculate the available cash, borrowings or repayments, and the loan balance through March 2. 3. 4. Bill's Bagels Cash Receipts, Cash Payments and Cash Budget NOVEMBER DECEMBER JANUARY FEBRUARY $ 30,000 $ 40,000 $ 40,000 $ 47,500 MARCH $ 60,000 SALES BUDGET: SALES CASH RECEIPTS BUDGET: CREDIT SALES 60% CASH SALES 40% $ $ 18,000 12,000 $ $ 24,000 $ 16,000 $ 24,000 16,000 COLLECTION OF RECEIVABLES: 1 MONTH AFTER SALE 60% 2 MONTHS AFTER SALE 40% $ 14,400 7,200 TOTAL BUDGETED CASH RECEIPTS 37,600 CASH PAYMENTS BUDGET Food Purchases 30%of prior month sales Payroll Expense 20% Selling & Admin 15% Overhead (fixed) Estimated Taxes (fixed) TOTAL BUDGETED CASH DISBRUSEMENTS 12,000 8,000 6,000 10,000 5,000 41,000 $ CASH BUDGET Beginning Cash Balance TOTAL BUDGETED CASH RECEIPTS TOTAL BUDGETED CASH DISBURSEMENTS Cash Available Desired Ending Cash Balance Expected Borrowing (or Repayment) Ending Cash Balance Loan Balance JANUARY FEBRUARY MARCH 15,000 $ 37,600 $ (41,000) $ 11,600 15,000 $ 15,000 $ 15,000 3,400 15,000 3,400