Exerclse 9-29 Budgeted Financial Statements; Retailer (LO 9-3, 9-5) Handy Hardware is a retall hardware store. Information about the stores operations follows. - November 20xi sales amounted to 5500.000. - Soles nre budgeted at $540,000 for December 20x1 and 5500,000 for January 202. - Collections are expected to be 60 percent in the month of sale and 38 percent in the month following the sale Two percent of soles are expected to be uncollectible. Bad debts expense is recognized monthly. - The store's gross margin is 20 percent of its sales revenue. - A total of 80 percent of the merchandise for resale is purchased in the month prior to the month of sale, and 20 percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses paid in cash amount to $46,200 - Annual depreciation is $462,000. The company's balance sheet as of November 30,20xt, is as follows: The folkiwing information is from Tejas Windowfints financial records, Goliectons frem customers are normally 66 percent in the month of saic, 19 percent in the month following the sale, and 13 percent in the tecond month following the saie. The baiance is evpected to be uncollecible. Al purchases are on account. Management takes fuli sovantage of the 4 percent discoint allowed on nurchases paid for by the tenth of the following month. Purchases for August are butgeted at $69.000. and sales for August are forecasted at $75.000. Cash disbursements for expenses are expected to be \$14,800 for the month of August. The company's cash balance on August I was 532.000. Required 1. Prepare the expected cach collections during August. 2. Prepare the expected cash disbursements during August. 3. Caiculate the expected cash balance on August 31 . Complete this question by antering your anwwers in the tabs below. Ealiculate the evpeded cath balance an August 31 . Exerclse 9-29 Budgeted Financial Statements; Retailer (LO 9-3, 9-5) Handy Hardware is a retall hardware store. Information about the stores operations follows. - November 20xi sales amounted to 5500.000. - Soles nre budgeted at $540,000 for December 20x1 and 5500,000 for January 202. - Collections are expected to be 60 percent in the month of sale and 38 percent in the month following the sale Two percent of soles are expected to be uncollectible. Bad debts expense is recognized monthly. - The store's gross margin is 20 percent of its sales revenue. - A total of 80 percent of the merchandise for resale is purchased in the month prior to the month of sale, and 20 percent is purchased in the month of sale. Payment for merchandise is made in the month following the purchase. - Other monthly expenses paid in cash amount to $46,200 - Annual depreciation is $462,000. The company's balance sheet as of November 30,20xt, is as follows: The folkiwing information is from Tejas Windowfints financial records, Goliectons frem customers are normally 66 percent in the month of saic, 19 percent in the month following the sale, and 13 percent in the tecond month following the saie. The baiance is evpected to be uncollecible. Al purchases are on account. Management takes fuli sovantage of the 4 percent discoint allowed on nurchases paid for by the tenth of the following month. Purchases for August are butgeted at $69.000. and sales for August are forecasted at $75.000. Cash disbursements for expenses are expected to be \$14,800 for the month of August. The company's cash balance on August I was 532.000. Required 1. Prepare the expected cach collections during August. 2. Prepare the expected cash disbursements during August. 3. Caiculate the expected cash balance on August 31 . Complete this question by antering your anwwers in the tabs below. Ealiculate the evpeded cath balance an August 31