EE ng Hacing Sales Purchases April (actual) $770,000 $320.000 May (actual) 730,000 310,000 June (forecast) 680,000 300,000 July (forecast). 690,000 420.000 August (forecast) 710,000 460,000 September (forecast) 795,000 455,000 The company makes 22 percent of its sales for cash and 78 percent on credit. Of the credit sales, 60 percent are collected in the month after the sale, and 40 percent are collected two months later. The company pays for 20 percent of its purchases in the month after purchase and 80 percent two months after Labor expense equals 19 percent of the current month's sales. Overhead expense equals $18,500 per month Bond interest payments of $55,000 are due in June and September. A cash dividend of $105,000 is scheduled to be paid in June. Tax payments of $50.000 are due in June and September. There is a scheduled capital outlay of S771,000 in September. Ending cash balance in May is $45,000. The minimum desired ending monthly cash balance is $20,000. The maximum desired ending monthly cash balance is $100,000. Excess cash (above $100,000) is used to buy marketable securities, Marketable securities typically carn a small return, but for this case no return is to be calculated and the Marketable Securities are to be sold before borrowing funds on the company's established Line or Credit (LOC) in case of a cash shortfall (less than $20,000) Prepare a schedule of monthly cash recipts, monthly cash payments, and a complete monthly cash budget with LOC borrowing and repayments for June through September. Uso the tables in the text as a template for completing this problem (be sure to consider the cash sales in the receipts schedule). Round all numbers to the nearest dollar. Ther, discuss the company's forecasting. What did you learn? What seems to be the most important consideration in preparing the forecey? The State) Focus Esco o Do 4 5 6 8 7 00 8 9 0 R T U