Exercise 1: Caleon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $9,000. b. Actual sales for July and August and expec ted sales for September are as follows: September Cash Sales Sales on Account Total Sales Jul 6,500 20,000 $26,500 Au S5,250 30,000 $35,250 $7,400 40,000 $47,400 Sales on account are collected over a three-month period as follows: 10% collected in the month of sale, 70% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. C. d. Purchases of inventory will total $25,000 for September. Twenty percent of a months inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $16,000, all of which will be paid in September e. Selling and administrative expenses are budgeted at $13,000 for September. Of this amount, f. Equipment costing $18,000 will be purchased for cash during September, and dividends g. The company maintains a minimum cash balance of $5,000. An open line of credit is Required $4,000 is for depreciation. totaling $3,000 will be paid during the month. available from the company's bank to bolster the cash position as needed. Prepare a schedule of expected cash collections for September. Prepare a schedule of expected cash disbursements during September for inventory purchases. Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September 1. 2. 3