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

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

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

Calculate

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