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Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts

Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020:

May 2019 $186,000
June 186,000
July 372,000
August 540,000
September 720,000
October 360,000
November 360,000
December 90,000
January 2020 180,000

Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials:

May 2019 $90,000
June 90,000
July 126,000
August 882,000
September 307,000
October 234,000
November 163,000
December 90,000

General and administrative salaries are approximately $28,000 a month. Lease payments under long-term leases are $9,000 a month. Depreciation charges are $36,000 a month. Miscellaneous expenses are $2,800 a month. Income tax payments of $63,000 are due in September and December. A progress payment of $180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $132,000, and a minimum cash balance of $90,000 should be maintained throughout the cash budget period.

  1. Prepare a monthly cash budget for the last 6 months of 2019. If no entry required, enter "0" or leave it blank. All payments and expenses should be entered as positive numbers. Cash losses, negative cash balance, negative cumulative cash, and cumulative loans outstanding, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary.
    May June July August September October November December January
    Collections and purchases worksheet
    Sales (gross) $ $ $ $ $ $ $ $ $
    Collections
    During month of sale
    During 1st month after sale
    During 2nd month after sale
    Total collections $ $ $ $ $ $
    Purchases
    Labor and raw materials $ $ $ $ $ $ $ $
    Payments for labor and raw materials $ $ $ $ $ $ $
    Cash gain or loss for month
    Collections $ $ $ $ $ $
    Payments for labor and raw materials
    General and administrative salaries
    Lease payments
    Miscellaneous expenses
    Income tax payments
    Design studio payment
    Total payments $ $ $ $ $ $
    Net cash gain (loss) during month $ $ $ $ $ $
    Loan requirement or cash surplus
    Cash at start of month $ $ $ $ $ $
    Cumulative cash $ $ $ $ $ $
    Target cash balance $ $ $ $ $ $
    Cumulative surplus cash or loans outstanding to maintain $90,000 target cash balance
    $ $ $ $ $ $

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