Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: a. Cash balance on June 1 is $1,186. b. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 35,000 Credit sales 28,900 Total sales $38,900 $53,000 c. Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. d. Inventory purchases average 70% of a month's total sales of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month e. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. f. Rent is $4,800 per month. g. Taxes to be paid in June are $6,780. The owner also tells you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required The owner of the company doesn't have access to short-term loans Required: 1. Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments Round calculations and in Print item 1. Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar. Be sure to enter percentages as whole numbers. Cash Budget For June Beginning cash balance Collections: Cash sales 18,600 Credit sales: Current month 54,000 x $ 40 % 21,600 May credit sales $ 35,000 10,500 April credit sales 5,896 Total cash available Less disbursements: Inventory purchases: Current month $ 35,000 30 % 10,500 5,896 April credit sales Total cash available $57,782 Less disbursements: Inventory purchases: Current month 4,455 x 20 % $ Prior month 6,586 X 80 % 990 Salaries and wages 11,750 Rent 4,800 Taxes 6,780 Total cash needs 12,489 Excess of cash available over needs $ 115,876 Feedback