EBOOK Calculator 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 $1,286 b. Actual sales for April and May are as follows: April May 800 Cash sales $10,000 $18,000 Credit sales 28,900 35,000 LGO 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 72% 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 1. Rent is $5,500 per month 9. Taxes to be paid in June are $6,780, The owner also tell 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: Check My Work Previous Next 55: 7/8 items 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 LGO Collections Cash sales ALGO ALGO Credit sales: Current month May Credit sales April credit sales Total cash available Less disbursements: Erwentory purchases Chapter 9 Homework Book Calculator .EX.09.50.ALGO April credit sales 2. EX.09.51 ALGO Total cash available Less disbursements 3. EX.09.54 ALGO Inventory purchases 4. EX.09.55. ALGO Current month 5. EX.09.58 ALGO Por month 6. EX.00.00. ALGO 7. EX.00,61 ALGO Salaries and was 8. EX.00.62 Rent Taxes Total cash needs Excess of cash available over needs 2. Conceptual Connection: Did the business show a negative cash balance for June