Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available a. The cash balance at the beginning of September is $9,950 b. Actual sales for July and August and expected sales for September are as shown below. Sales on account are collected over a three-month period as follows 10% collected in the month of sale, 70% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible Cash sales Sales on account 29,500 49,000 59,000 July August September $ 8,400 $6,200 8,160 Total sales $37,900 $55,200 $67,160 c. Purchases of inventory will total $34,500 for September. Twenty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $27,400, all of which will be paid in September d. Selling and administrative expenses are budgeted at $22,500 for September. Of this amount, $7,800 is e. Equipment costing $27,500 will be purchased for cash during September, and dividends totalling $5,820 f. The company maintains a minimum cash balance of $5,800. An open line of credit is available from the for depreciation will be paid during the month company's bank to bolster the cash position as needed. Assume any borrowings occur at the beginning of the month and repayments occur at the end of the month Interest on outstanding loan balances during the month must be paid at the end of each month. The monthly interest rate is 0.5 Required 1. Prepare a schedule of expected cash collections for September. September cash sales September collections on account S 8,160 July sales August sales September sales 5,310 34,300 Total cash collections $ 53,670 2. Prepare a schedule of expected cash disbursements during September for inventory purchases Payments to suppliers: August purchases (accounts payable) September purchases Total cash payments S 27,400 6,900 $ 34,300