Exercise 10.44 A university student, Brad Worth, plans to sell atomic alarm clocks with CD players over the Internet and by mail order to help pay his expenses during the fall semester. He buys the clocks for $32 and sells them for $52. If payment by cheque accompanies the mail orders (estimated to be 40% of sales), he gives a 10% discount. If customers include a credit card number for either Internet or mail order sales (30% of sales), customers receive a 5% discount. The collections are estimated: One month following 15% Two months following 6% Three months following 4% Uncollectible 5% Sales forecasts are as follows: September 100 units October 200 units November 300 units December 430 units January out of the business Brad plans to pay his supplier 50% in the month of purchase and 50% in the following month. A 6% discount is granted on payments made in the month of purchase; however, he will not be able to take any discounts on September purchases because of cash flow constraints. All September purchases will be paid for in October. He has 50 clocks on hand (purchased in August and to be paid for in September) and plans to maintain enough end-of-month inventory to meet 70% of the next month's sales. Your answer is partially correct. Try again. Prepare schedules for monthly budgeted cash receipts and cash disbursements for this venture. During which months will Brad need to finance purchases? (Round all entries to whole amounts.) Cash Receipts Sept Oct Nov Dec Jan Feb Mar Units sold 100 200 300 430 X x Cash sales 2080 Credit card sales 1560 One month later x X X X X Two months later x Three months later Total Cash Disbursements Sept Oct Nov Dec Jan Units sold 100 200 300 430 Purchases Desired ending inventory 125 TUnits sold this month X Less Beginning inventory Budgeted purchases Cash Disbursements: Paid same month Paid next month X Total Summary of Budgeted Cash Receipts and Disbursements Sept Oct Nov Dec Jan Feb Mar x x Cash receipts X X X Cash disbursements X X Net cash flow Cumulative cash flow Brad will need to finance purchases during the month of October LINK TO TEXT X Your answer is incorrect. Try again. Brad planned simply to write off the uncollectibles. However, his accounting professor suggested that he turn them over to a collection agency. How much could Brad let the collection agency keep so that he would be no worse off? (Round answer to 0 decimal places, e.g. 125.) Amount of uncollectibles 3354 LINK TO TEXT