g. Equipment will be acquired for cash: $4,000 in January and $10,000 in February.

h. Management would like to maintain a minimum cash balance of 3,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of 2,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 2% per month, and for simplicity we will assume that interest is not compounded. The company would as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the data above:

1. Complete the following Schedule:

Schedule of expected cash collections
	January	February	March	Quarter
Cash sales
Credit sales
Total collections

2. Complete the following:

Merchandise Purchases Budget
	January	February	March	Quarter
Budgeted cost of goods sold
Add: desired ending inventory
Total needs
Less: beginning inventory
Required purchases

Schedule of expected cash disbursements- Merchandise Purchase
	January	February	March	Quarter
December purchases
January purchases
February purchases
March purchases
Total disbursements

3. Complete the following schedule:

Schedule of expected cash disbursements- Selling and administrative expenses
	January	February	March	Quarter
Commissions
Rent
Other expenses
Total disbursements

4. complete the following cash budget:

Cash Budget
	January	February	March	Quarter
Cash balance, beginning
Add: cash collections
Total cash available
Less: cash disbursements
For inventory
For Selling and administration
For equipment
Total cash disbursements
Excess /deficiency of cash
Financing:
Borrowings
Repayment
Interest
Total financing
Cash balance

The following data relate to the operations of Rebel Corporation, a wholesale distributor of consumer goods. Current assets as of December 31: Cash Accounts receivable Inventory Buildings and equipment Accounts payable Capital Stock Retained earnings $ 15,000 25,000 8,500 110,000 35,000 100,000 23,500 a. The gross margin is 40% of sales (so cost of goods sold is 60% of sales) b. Actual and budgeted sales data are as follows: Below table indicates sales for December month and sales for Jan, Feb and March months you have to take your own amounts. Months December January February March April Amounts ($) 50,000 Assume your own amount Assume your own amount Assume your own amount Assume your own amount C. Sales are 50% for cash and 50% on credit. Credit sales are collected in the month following sale. The accounts receivable at December 31 are the result of December credit sales. d. Each month ending inventory should equal 30% of the following month's budgeted cost of goods sold. e. One-quarter of a month's inventory purchases is paid for in the month of purchase; the other three quarter is paid for in the following month. The accounts payable at December 31st are the result of December purchase of inventory. f. Monthly expenses are as follows: commission $10,000, rent $2,000, other expenses excluding depreciation 7% of sales. Assume all these expenses are paid monthly. Depreciation is $2,500 for the quarter and includes depreciation on new assets acquired during the quarter