Chapter 21 Hundout ? budgets sales of $60,000 for April, $100,000 for May and $80,000 for June. In addition, sales are as 2010 cash receipts budget P2 0% cash and 60% on credit. A l credit sales are collected in the month following the sie The April 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for April, May, and June. Os 20-17 Manufacturing Production budget P1 Forrest Company manufactures phone chargers and has a JIT policy that ending inventory must equal 10% of the next month's sales. It cstimates that October's actual ending inventory will consist of 40,000 units. November and December sales arc estimated to be 400,000 and 350,000 units, respectively. Compute the number of units to be produced that would appear on the company's production budget for the month of November. Exercisa 20-17 Preparation of cash Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash disbursements (excluding cash disbursements for loan principal and interest payments) for the first three months of next year. dgets for three periods) Cash Receps Cash Disbursements P2 February March. $525,000 400,000 450,000 $475,000 350,000 525,000 According to a credit agreement with the company's bank, Kayak promises to have a minimum cash bal- ance of $30,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with avail- able cash on the last day of each month. The company has a cash balance of $30,000 and a loan balance Chack larn of $60,000 at January 1. Prepare monthly cash budgets for each of the first three months of next year. cash balar Jasper Company has sales on account and for cash. Spect cally, 70% of its sales are on account and 30% Exercise 20-18 are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales Budgeted cash receipts of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of accounts re- ceivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. P2