Cash Budget The Williams Supply Company sells for $50 one product that it purchases for $20. Budgeted sales in total dollars for the year are $3,000,000. The sales information needed for preparing the July budget follows:

Month Sales Revenue May $ 175,000 June 240,000 July 295,000 August 320,000

Account balances at July 1 include these:

Cash $ 125,000 Merchandise inventory 47,200 Accounts receivable (sales) 84,530 Accounts payable (purchases) 47,200

The company pays for one-half of its purchases in the month of purchase and the remainder in the following month. End-of-month inventory must be 40% of the budgeted sales in units for the next month. A 2% cash discount on sales is allowed if payment is made during the month of sale. Experience indicates that 60% of the billings will be collected during the month of sale, 25% in the following month, 12% in the second following month, and 3% will be uncollectible. Total budgeted selling and administrative expenses (excluding bad debts) for the fiscal year are estimated at $1,200,000, of which three-fourths is fixed expense (inclusive of a $36,000 annual depreciation charge). Fixed expenses are incurred evenly during the year. The other selling and administrative expenses vary with sales. Expenses are paid during the month incurred.

(d) Prepare a schedule of cash receipts over disbursements assuming no equipment purchases or loan payments.

Do not use negative signs with any answers below.

WilliamsSupply Company Cash Budget For the Month of July
Cash receipts		Answer
Cash disbursements:
Merchandise	Answer
Selling and administrative	Answer	Answer
Excess receipts (disbursements)		Answer