Budgeted Sales March April May June July Schedule of Expected Cash Collections April May June Quarter Cash Sales $ 36,000 Credit Sales 20,000 Total Collections $ 56,000 Merchandise Purchases Budget April May June Quarter Budgeted Cost of Goods Sold $ 45,000 add: Desired Ending Inventory 43,200 Total Needs 88,200 less: Beginning Inventory 36,000 Required Purchases $ 52,200 Schedule of Expected Cash Disbursements - Merchandise Purchaes April May June Quarter March Purchases $ 21,750 $ 21,750 April Purchases 26,100 26,100 52,200 May Purchases June Purchases Total Disbursements $ 47,850Schedule of Expected Cash Disbursements - Selling 81 Administrative Commissions Rent Other Expenses Total Disbursements Cash Balance Beginning Add: Cash Collections Total Cash Available Less Cash Disbursements For Inventory For Expenses For Equipment Total Cash Disbursements Excess (deficiency) of Cash Borrowing Repayments Interest Paid Ending Cash Balance April 5 7,200 2,500 3,600 5 13,300 Cash Budget April $ 8,000 50,000 64,000 47,850 13,300 1,500 62,650 1,350 May May June June Quarter Quarter The following data relate to the operations of Shiloh Company. a wholesale distributor of consumer goods: Current 355915 as of March 31: Cash ________________________________________________________________________ $0.000 Accounts receivable ........................................................... $20,000 Inventory ......................... . . .................................... . $36,000 Buildlng and equipment. net 7777777777777777777777777777777777777777777777777777777 $120000 Accounts payable ............................................................... $21.75!] Common stock ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, $150,000 Retained earnings _______________________________________________________________ $12,250 a. The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, $50,000 April ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, $60,000 May 512.000 June ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, $90.00!) July ________________________________________________________________________ $48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation). 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month (includes depreciation on new assets). g. Equipment costing $1,500 will be purchased for cash in April. h. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1 ,000 at the beginning of each month, up to a total loan balance of 820,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Using the data provided above, use the Excel Template provided to prepare the following budget schedules: '1. Sales Budget {Merely enter the sales data provided.) 2. Schedule of Expected Cash Collections 3. Merchandise Purchases Budget 4. Schedule of Expected Cash Disbursements - Merchandise Purchases 5. Schedule of Expected Cash Disbursements - Selling and Administrative Expenses 6. Cash Budget