Creasy expects 10% of sales to be collected in cash from the customer immediately and 90% on credit. Credit sales are always paid in full in the following month.

All direct materials purchases are on credit and are paid in full in the following month. No other payables arise from any other transactions.

As of June 30, the Accounts Receivable balance is $720,000. The Accounts Payable balance is $308,700.

The minimum ending cash balance for all months is $100,000. If necessary, the company borrows enough cash using a short term note to reach the minimum.

Short term notes require an interest payment of 0.5% each month end (before repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short term notes payable balance.

The company expects to declare and pay a dividend of $80,000 in July.

The company does not expect to make any payments for Income Taxes in the budgeted quarter.

Equipment purchases of $25,000 are scheduled for September. No disposals of fixed assets are anticipated.

Using this information plus the information you prepared in the previous questions, prepare the Cash Budget.

Cash Budget

Cash Budget	July	August	September
Budgeted Sales Dollars
Cash Sales			108,000
Collections of Accounts Receivable		828,000
Total Cash Receipts	812,000
Beginning Cash	100,000
Cash Receipts		828,000
Direct Materials			315,000
Direct Labor	245,000
Variable Overhead		47,700
Fixed Overhead (cash portion only)	8,000
Sales Commissions			97,200
Sales Salaries	5,000	5,000
G&A Salaries	10,000	10,000	10,000
Interest on Long Term Notes Payable	1,500	1,500	1,500
Interest on Short Term Notes Payable
Dividends
Capital Expenditures
Total Payments	785,225
Preliminary Cash			541,605
Cash borrowed or repaid on short term notes
Ending Cash		278,755	541,605