Ellis Electronics Companys 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)	$330,000	$131,000
May (actual)	310,000	121,000
June (forecast)	285,000	121,000
July (forecast)	285,000	181,000
August (forecast)	300,000	201,000
September (forecast)	340,000	171,000

The company makes 10 percent of its sales for cash and 90 percent on credit. Of the credit sales, 10 percent are collected in the month after the sale and 90 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 10 percent of the current month's sales. Overhead expense equals $12,100 per month. Interest payments of $30,500 are due in June and September. A cash dividend of $50,500 is scheduled to be paid in June. Tax payments of $25,100 are due in June and September. There is a scheduled capital outlay of $310,000 in September.

Ellis Electronics' ending cash balance in May is $20,500. The minimum desired cash balance is $15,500.

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 receipts			$	$	$	$

c.

Prepare a complete monthly cash budget with borrowing and repayments for June through September. The minimum desired cash balance is $50,100. Excess cash (above $50,100) is used to buy marketable securities. All marketable securities are sold before borrowing funds in case of a cash shortfall (less than $15,500). (Do not leave any empty spaces; input a 0 wherever it is required. Negative answers 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	$	$	$	$