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COSUN II. Problems Sweeny Co is preparing a cash budget for May. The following forecasted data is available: April Max $36,000 $177,500 132,400 Beginning Loan

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COSUN II. Problems Sweeny Co is preparing a cash budget for May. The following forecasted data is available: April Max $36,000 $177,500 132,400 Beginning Loan Balance $150,500 $127.000 Sales Merchandise purchases Operating expenses (all paid in cash): Payroll Advertising Rent 16,280 7,700 3.500 Additional data: no orion Loun balance at beginning of May is $36,000 (as noted above). Interest due each month is balance 12) Any cash balance above $40,000 is used to repay as much of loan balance as possible. (1) The collection pattern for sales is 60% in the month of the sale and 40% in the following month. (2) Purchases are 60% paid in the month of purchase and the other 40% balance paid the next month. Prepare the company's cash budget for May. Show the ending loan balance at May 31 (10 points) a. Calculate May's cash receipts from customers and use this as "Cash receipts from sales in the cash budget: (10 points) Cash to be received in Mar: Cash received from May Sales (60% of current month's sales): Cash received in May from April's credit sales (40% of April sales): Total cash collections from customers in May: b. Calculate cash disbursements for purchases and use this as "Cash Payments for purchases" in the cash budget: (10 points) Cash to be paid in May Cash paid in May for May purchases (60% of current month's purchases) Cash paid in May for April purchases (40% of April purchases): Total cash paid in May for purchases: Prepare the company's cash budget for May. Show the ending loan balance at may Sweeny Corporation Cash Budget For the Month of May Beginning cash balance Cash receipts from sales $ 40,000 Total Cash Available during May Cash disbursements (purchases & cash operating expenses): Preliminary cash balance Loan repayment Ending cash balance Loan balance, end of month

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