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Sales budget: Sales budget July august september quarter budgeted sales value 280,000 300,000 290,000 870,000 Schedule of expected cash collection july august september quarter From accounts receivable 129,000 129,000 from july sales 98,000 182,000 280,000 (35% received in current month and 65% expected to receive in following month) from august sales 105,000 195,000 300,000 (35% received in current month and 65% expected to receive in following month) from september sales 101,500 101,500 (35% received in current month and 65% expected to receive in following month) total cash collections 227,000 287,000 296,500 810,500 Cost of goods sold july august september quarter october sales 280,000 300,000 290,000 870,000 310,000 Cost of goods sold 210,000 225,000 217,500 652,500 232,500 (75% of sales)2-a) Merchandise Purchases budget july august september quarter budgeted cost of goods sold 210,000 225,000 217,500 652,500 Add: closing inventory 56,250 54,375 58,125 58,125 (25% of following following month's cost of goods sold) Total needs 266,250 279,375 275,625 710,625 Less: Opening inventory (52,500) (56,250) (54,375) (52,500) Required purchases 213,750 223,125 221,250 658,125 2-b) Schedule of cash disbursements for merchandise purchases july august september quarter from accounts payable 78,000 78,000 from july purchase 85,500 128,250 213,750 (40% paid in current month and 60% paid in next month) from august purchase 89,250 133,875 223,125 (40% paid in current month and 60% paid in next month) from september purchase 88,500 88,500 (40% paid in current month and 60% paid in next month) Total cash disbursements 163,500 217,500 222,375 603,375\f4] VEELANCE CORPORATION Budgeted balance sheet as of september 30 Amount {in in Assets: cash Accounts receivable inventory plant and equipment Lees: Depreciation during the quarter [15,000] lJaloilities and stockholders equity. Accounts payable common stock Total iabiilies 31d stockholders equity Amount (in $1 working note: Opening balance 129,000 Add: sales 370,000 Less: collection 310,500 closing balance 133,500 Accounts payable opening balance Add: purchases 653,125 Less: Payment 603,375 Closing balance 132,?50 Heb-"med ea'nings opening balance Add: net operating income closing balance