Global Electronics' cost of goods sold generally runs at 70% of sales. Inventory is purchased on account, and 40% of each month's purchases are paid during the month of purchase. The remainder is paid during the following month. In order to have adequate stocks of inventoryo hand, the firm attempts to have inventory at the end of each monthequal to half of the next month's projected cost ofgoods sold.

Projected sales for Dec of 20x0 are $800,000. Credit sales are typically 75% of total sales. Global credit experience indicates that 10% of credit sales are collected during the month of sale , and the remainders are collected during the follwoing month.

Projected Sales	Percentages	$ 800,000.00
Credit Sales (75% of sales)	75%
Collections during month of sale (10%) of sales	10%
Cost of Goods Sold (70% of sales)	70%
Sales Salaries		$ 42,000.00
Advertising and Promotion		$ 32,000.00
Administratice Salaries		$ 42,000.00
Depreciation		$ 50,000.00
Interest on Bonds (Paid semi-annually January 31 and July 31)		$ 5,000.00
Property Taxes Paid Semi-annually on February 28 and August 31)		$ 1,800.00
Sales Commissions (1% of sales)	1%

Find the sales budget as follow

Global Electronics	Percentages
		December 20x0	January 20x1	February 20x1	March 20x1	1st Quarter 20x1
Total Sales
Cash Sales
Sales on Account

Find the Cash Receipts Budget as follow

Global Electronics	Percentages
		January 20x1	February 20x1	March 20x1	1st Quarter 20x1
Cash Sales
Cash collections from credit sales made during the current month
Cash collections from credit sales made during the preceding month
Total cash receipts

Find the Purchases Budget as follow

Global Electronics

Percentages

January 20x1

February 20x1

March 20x1

1st Quarter 20x1

Cash Sales

Cash collections from credit sales made during the current month

Cash collections from credit sales made during the preceding month

Total cash receipts

Find the Cash Disbursement Budget as follow

		January 20x1	February 20x1	March 20x1	1st Quarter 20x1
Inventory purchases
Cash payments for purchases during the current month
Cash payments for purchases during the preceding month
Total cash payments for inventory purchases
Other expenses
Sales Salaries
Advertising and promotion
Administrative salaries
Interest on bonds
Property taxes
Sales commissions
Total cash payments for other expenses
Total cash disbursements