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 $9,650.
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:

	July			August			September
Cash sales	$	7,800		$	5,900		$	7,920
Sales on account		26,500			43,000			53,000
Total sales	$	34,300		$	48,900		$	60,920

c.	Purchases of inventory will total $31,500 for September. Twenty percent of a months inventory purchases are paid for during the month of purchase. The accounts payable remaining from Augusts inventory purchases total $23,800, all of which will be paid in September.
d.	Selling and administrative expenses are budgeted at $19,500 for September. Of this amount, $6,600 is for depreciation.
e.	Equipment costing $24,500 will be purchased for cash during September, and dividends totalling $4,940 will be paid during the month.
f.	The company maintains a minimum cash balance of $5,200. An open line of credit is available from the companys 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	$7,920
September collections on account:
July sales	4,770
August sales	30,100
September sales	5,300
Total cash collections	$48,090

2.	Prepare a schedule of expected cash disbursements during September for inventory purchases.
	Payments to suppliers: August purchases (accounts payable) $23,800 September purchases 6,300 Total cash payments $30,100

3.	Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. (Round your intermediate calculations to the nearest whole number.)

Calgon Products
Cash Budget
For the Month of September
Cash balance, September 1
Add cash receipts:
Collections from customers
Total cash available before current financing		12,900
Less disbursements:
Payments to suppliers for inventory
Selling and administrative expenses
Equipment purchases
Dividends paid
Total disbursements		0
Excess (deficiency) of cash available over disbursements		12,900
Financing:
Borrowings
Repayments
Interest
Total financing		0
Cash balance, September 30		$12,900