Calibri (Body) 11 A > General a Wrap Text Paste B I U y v Av E E = Merge & Center v 8 % V = 2 A13 x fx A B D E F G H 1 J L M 1 2 WN Sunny and Clear, Inc. is a small wholesale distributor of consumer goods. The company generates a gross margin shown in the blue table. The percent of cash sales is shown in the blue table; the remainder is sold on account and is collected one month later. Accounts receivable on June 30, 2020 are the result of June credit sales. Actual and budgeted sales for the period were as follows: Click here to create your "Blue Table." 3 4 5 6 7 8 9 10 June (actual) July August $45,000 S52,000 $56,000 Gross Margin Cash Sales Ending Inventory 23% 26% 35% September $60,000 48% Inventory purchases paid in cash Other Expenses October $48.000 8% Save your file to preserve this table. Complete the assignments on the "Display Budget Schedules" tab. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 The company plans for each month's ending inventory to be the blue table percentage of the following month's budgeted cost of goods sold. Inventory cash purchases are shown in the blue table; the rest is paid for in the following month. The accounts payable on June 30 are the result of June purchases of inventory. All monthly expenses were paid monthly. Monthly expenses included: commissions, $9,000; rent, $1,200; other expenses (excluding depreciation), are reflected in the blue able as a percent of sales. Depreciation is $1,300 for the quarter and includes depreciation on new assets acquired during the quarter. The assets acquired for cash during the quarter included equipment of $2,100 in July and $3,000 in August. The company wishes to maintain a minimum cash balance of $3,000 at the end of each month. The company has a financing facility that allows the company to borrow in increments of $1,000 at the beginning of each month from a local bank, up to a total loan balance of $30,000. The interest rate on these loans is 1.5% per month, and interest is not compounded. The company, when able, repays the loan plus accumulated interest at the end of the quarter. Calibri (Body) v 11 In ~AI === ir ab Wrap Text Number V IT PA Paste B IV av A A~ | Merge & Center v - % ) I IX DE Fc FC Y Conditional Format Cell Formatting as Table Styles A13 x fx A B C D E F H I J K L M P Q R 5 T U Additional information: Current assets as of June 30: Cash Accounts receivable Inventory Buildings and equipment, net Accounts payable Capital stock Retained earnings $4,000 $29,250 $7,100 S102,550 $22,400 $99,000 $21,500 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 Required: Using the data above, for quarter ending September 2020, prepare the following: a. The schedule of the expected cash collections b. The merchandise purchases budget: C. The schedule of expected cash disbursements -merchandise purchases. d. schedule of expected cash disbursement -Selline and administrative expenses e. The cash budget: f. An absorption costing Income statement, for the quarter ending September 2020 8. A balance sheet as of September 30, 2020 *Provide a short write up (2-3 paragraphs) of the cashflow situation at this company after you completed the budgets. What are your concerns and what would you recommend to management
