Ellis Electronics Company$$s actual sales and purchases for April and May are shown here, along with forecasted sales and purchases for June through September.

Sales Purchases

April $($actual$)$ $$350,000$ $$133,000$

May $($actual$)330,000123,000$

June $($forecast$)305,000123,000$

July $($forecast$)305,000183,000$

August $($forecast$)320,000203,000$

September $($forecast$)360,000173,000$

The company makes $40$ percent of its sales for cash and $60$ percent on credit. Of the credit sales, $30$ percent are collected in the month after the sale and $70$ percent are collected two months after. Ellis pays for $40$ percent of its purchases in the month after purchase and $60$ percent two months after.

Labour expense equals $15$ percent of the current month's sales. Overhead expense equals $$12,300$ per month. Interest payments of $$31,500$ are due in June and September. A cash dividend of $$51,500$ is scheduled to be paid in June. Tax payments of $$25,300$ are due in June and September. There is a scheduled capital outlay of $$330,000$ in September.

Ellis Electronics' ending cash balance in May is $$21,500.$ The minimum desired cash balance is $$16,500.$

a$.$ Prepare a schedule of monthly cash receipts for June through September.

Ellis Electronics

Cash Receipts Schedule

April May June July August September

Sales $ $ $ $ $ $

Credit sales

Cash sales

Collections in month after sale

Collections second month after sale

Total cash receipts

b$.$ Prepare the monthly cash payments for June through September.

Ellis Electronics

Cash Payments Schedule

April May June July August September

Purchases $ $ $ $ $ $

Payments in the month after purchase

Payments second month after purchase

Labour expense

Overhead

Interest payments

Cash dividend

Taxes

Capital outlay

Total cash payments $ $ $ $

c$.$ Prepare a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $$50,300.$ Excess cash $($above $$50,300)$ is used to buy marketable securities$.$ Marketable securities are sold before borrowing funds in case of a cash shortfall $($less than $$16,500).($Omit $ sign in your response. Do not leave any empty spaces; input a $0$ wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.$)$

Ellis Electronics

Cash Budget

June July August September

Cash receipts $ $ $ $

Cash payments

Net cash flow

Beginning cash balance

Cumulative cash balance

Monthly borrowing or $($repayment$)$

Cumulative loan balance

Marketable securities purchased

Marketable securities sold

Cumulative marketable securities

Ending cash balance $ $ $ $