Bonus Cash budgeting

Dilbert Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:

Sales are budgeted at $260,000 for November, $230,000 for December, and $210,000 for January.

Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.

The cost of goods sold is 65% of sales.

The company purchases 60% of its merchandise in the month prior to the month of sale and 40% in the month of sale. Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $20,300. Monthly depreciation is $20,000. Ignore taxes. Statement of Financial Position October 31

Assets

Cash Accounts receivable (net of allowance for uncollectible accounts) Inventory Property, plant and equipment (net of $574,000 accumulated depreciation) Total assets Liabilities and Stockholders Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders equity Calculate

$ 27,000 79,000 101,400 1,082,000 $1,289,400

$ 169,000 740,000 380,400 $1,289,400

Expected cash collections in December

December cash disbursements for merchandise purchases

The excess (deficiency) of cash available over disbursements for December

The cash balance at the end of December