Hardy Company's cost of goods sold is consistently 70% of sales. The company plans ending merchandise Inventory for each month equal to 30% of the next month's budgeted cost of goods sold. All merchandise is purchased on credit, and 50% of the purchases made during a month is paid for in that month. Another 35% is paid for during the first month after purchase, and the remaining 15% is paid for during the second month after purchase. Expected sales are August (actual), $405,000, September (actual, $380,000 October (estimated), $310,000; and November (estimated). $310,000. Use this information to determine October's expected cash payments for purchases. Calculate Monthly Purchases: August September October November Budgeld ending inventory Cost of goods sold (estimated) Required available inventory Budgeted beginning inventory Required purchases Calculate Payments Made for inventory Purchases paid in September October Purchases August After October August purchases September purchases October purchases Determine October's Expected Cash Payments for Purchases October's expected cash payments for purchases Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted Sales Cash payments for merchandise July $62,500 43,400 August $81,500 32,100 September $49,500 32,900 Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,800 in cash: $51,000 in accounts receivable: $6,000 in accounts payable; and a $3,500 balance in loans payable. A minimum cash balance of $13,500 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (5% of sales), office salaries ($5,500 per month), and rent ($8,000 per month). (1) Prepare a cash receipts budget for July, August, and September. (2) Prepare a cash budget for each of the months of July, August, and September Complete this question by entering your answers in the tabs below. es Required 1 Required 2 Prepare a cash receipts budget for July, August, and September. July 62,500 $ August September 81,500 $ 49,500 $ Total sales Cash sales Credit sales 15% 85% KELSEY Cash Receipts Budget For July August, and September July August Cash sales Collections of accounts receivable Total cash receipts September Required) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a cash budget for each of the months of July, August, and September. (Negative balances and Loan repayment amounts (If any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) KELSEY Cash Budget For July, August, and September July August $ 13,800 September Beginning cash balance Total cash available Cash payments for 5 Total cash payments Preliminary cash balance Ending cash balance Loan balance July August September $ 3.500 Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month