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: Cash balance on June 1 is $1,336. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 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. 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. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. Rent is $4,400 per month. 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 doesnt 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 final answers to the nearest dollar. Be sure to enter percentages as whole numbers. Cash Budget For June Beginning cash balance $fill in the blank e2e696fb0faaf7f_1 Collections: Cash sales fill in the blank e2e696fb0faaf7f_2 Credit sales: Current month $fill in the blank e2e696fb0faaf7f_3 fill in the blank e2e696fb0faaf7f_4 % fill in the blank e2e696fb0faaf7f_5 May credit sales $fill in the blank e2e696fb0faaf7f_6 fill in the blank e2e696fb0faaf7f_7 % fill in the blank e2e696fb0faaf7f_8 April credit sales fill in the blank e2e696fb0faaf7f_9 Total cash available $fill in the blank e2e696fb0faaf7f_10 Less disbursements: Inventory purchases: Current month $fill in the blank e2e696fb0faaf7f_11 fill in the blank e2e696fb0faaf7f_12 % $fill in the blank e2e696fb0faaf7f_13 Prior month $fill in the blank e2e696fb0faaf7f_14 fill in the blank e2e696fb0faaf7f_15 % fill in the blank e2e696fb0faaf7f_16 Salaries and wages fill in the blank e2e696fb0faaf7f_17 Rent fill in the blank e2e696fb0faaf7f_18 Taxes fill in the blank e2e696fb0faaf7f_19 Total cash needs fill in the blank e2e696fb0faaf7f_20 Excess of cash available over needs $fill in the blank e2e696fb0faaf7f_21 2. Conceptual Connection: Did the business show a negative cash balance for June? Check My Work3 more Check My Work uses remaining.

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 $1,336. b. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 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 $4,400 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 final answers to the nearest dollar. Be sure to enter percentages as whole numbers. Cash Budget For June Beginning cash balance Collections: Cash sales 000 Credit sales: Current month % May credit sales % April credit sales Total cash available o Less disbursements: Total cash available Less disbursements: Inventory purchases: Current month % Prior month % Salaries and wages IIUL Rent Taxes Total cash needs Excess of cash available over needs 2. Conceptual Connection: Did the business show a negative cash balance for June