Exercise 7-11 schedules of expected cash collections and disbursements (LO2, LO4, LO8)

Calgom products, a distributor of organic beverages, needs a cash budget for September. The following information is available:

Prepare the company's budgeted balance sheet. Schedules of Expected Cash Collections and Disbursements s, a distributor of organic beverages, needs a cash budget for September.T ES and Disbursements LO2, LO4, Lo 04, SE 7-I1 Sh SE 7-11 EXERCI Calgon Produ formation is available: cts, a distributor of o 00. a. The cash balance at the beginning of September is S9,00 ted sales for September are as follows: b. Actual sales for July and August and expec September $ 7,400 40,000 $47,400 July August Cash sales Sales on account. $5,250 30,000 $26,500 $35,250 collected in the c. Purchases of inventory will total $25,000 for September. Twenty percent of a month's inventory pur- d. Selling and administrative expenses are budgeted at $13,000 for Ser oer. Of this amount, $4,000 month of 1, 70% collected in the month following sale, and I 8% collected in the second month following sale. The remaining 2% is uncollectible. chases are paid for during the month of purchase. The accounts payable remaining from August's in- ventory purchases total $16,000, all of which will be paid in September. is for depreciation